The Main Problem That Exists in Valuing Accounts Receivables Is

question 20

Multiple Choice

The main problem that exists in valuing accounts receivables is:

• A) estimating the value of goods that may be returned.
• B) keeping track of the amount that is owed by individual debtors.
• C) estimating the amount of receivables that will become bad.
• D) reconciling the debtor's control account with the debtor's subsidiary ledger.

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Definitions:

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.

Disposable Income

Fiscal assets at households' disposal for spending and saving after income taxes have been subtracted.

Consumption

Households' utilization of both products and services.

MPS

The marginal propensity to save, which is the fraction of additional income that is saved.