Capabilities Refer to a Firm's Skill in Using Its Resources

question 65

True/False

Capabilities refer to a firm's skill in using its resources to create goods and services.

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Definitions:

Bad Debt Expense

An estimate of receivables that a company does not expect to collect, recognized as an expense in the income statement.

Open Account

A type of credit arrangement where goods and services are delivered with the understanding that payment will be made at a later date.

Interest-Bearing Note

A debt instrument in which the borrower promises to pay the lender a fixed amount of interest in addition to repaying the principal.

60-Day Note

Definition: A financial instrument, or promissory note, that requires the borrower to pay back the principal balance along with any interest in 60 days.