The Economy's LRAS Curve Is

question 153

Multiple Choice

The economy's LRAS curve is:

• A) upward sloping.
• B) downward sloping.
• C) vertical.
• D) horizontal.

---

Definitions:

Receipt of Cash

The process of receiving cash as a form of payment, often recorded during accounting transactions.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated as sales divided by the average accounts receivable.

Days' Sales in Receivables

A financial metric that measures how quickly a company collects on sales made on credit, indicating the average number of days it takes to convert receivables into cash.

Allowance Method

An accounting technique used to estimate the amount of uncollectible accounts receivable and adjust for bad debts.