Suppose X Grows at a Rate $\bar { g } _ { x } = 3$

question 92

Multiple Choice

Suppose x grows at a rate $\bar { g } _ { x } = 3$ percent and y grows at a rate $\bar { g } _ { y } = 3$
Percent. If z = x $\times$ y, then z grows at ________; if z = x/y, z grows at ________.

• A) 0 percent; 6 percent
• B) 6 percent; 0 percent
• C) 6 percent; 12 percent
• D) -6 percent; 6 percent
• E) 1 percent; 0 percent

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Definitions:

Direct Write-off Method

An accounting technique for recognizing bad debts where specific uncollectible accounts are directly written off against income when deemed unrecoverable.

Aging of Receivables Method

An accounting technique used to estimate the amount of and provision for doubtful accounts by categorizing receivables according to the length of time they have been outstanding.

Direct Write-off Method

An accounting method in which uncollectible accounts receivable are directly written off against income at the time they are deemed irrecoverable.

Aging Report

A financial report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.