A Graphic Illustration of the Cumulative Size Distribution of Income

question 108

Multiple Choice

A graphic illustration of the cumulative size distribution of income is known as the

• A)Size distribution of income.
• B)Okun curve.
• C)Lorenz curve.
• D)Gini coefficient.

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Definitions:

Bad Debt Expense

The expenses linked to the accounts receivable that a business cannot recover.

Debit Balance

A situation in an account where the sum of debits exceeds the sum of credits, indicating an amount owed or an asset.

Allowance for Doubtful Accounts

An estimation of the accounts receivable that is not expected to be collected, reducing the gross receivables to the amount that is expected to be collected.

Bad Debt Expense

An expense reported in the financial statements, representing accounts receivable that a company does not expect to collect from its customers.