The Ahluwalia-Chenery Welfare Index

question 17

Multiple Choice

The Ahluwalia-Chenery welfare index

• A)is a method used to measure changes in absolute poverty.
• B)shows the value judgment implications of using the change in income per capita as a measure of the change in development.
• C)is a method used to measure changes in inequality.
• D)is a method used to measure the growth rate of GDP.

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Definitions:

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collected, recognized as a contra asset account.

Cash Realizable Value

The net amount of cash expected to be received from receivables, after accounting for allowances for doubtful accounts.

Accounts Receivable

Debts owed by customers to a company for delivered goods or performed services that remain unpaid.

Allowance

An accounting adjustment that reduces the value of an asset or increases a liability to reflect probable future costs.