The Amount of Education That One Has Is an Important

question 52

Multiple Choice

The amount of education that one has is an important factor in the determination of his or her wage rate. This is best described as

• A) a positive statement.
• B) an example of the fallacy of composition.
• C) a normative statement.
• D) an example of marginalism.

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Definitions:

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable that a company does not expect to collect.

Uncollectible Receivables

Amounts due from customers that are considered unattainable and likely to never be collected.

Adjusting Entry

An adjusting entry is a journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period, ensuring the accounts comply with the accrual basis of accounting.