Which of the following best describes term life insurance?

Correct Answer: Accounts receivable is the amount to be received by the seller from the customer Hence, it comes under asset

Correct Answer: consumption/income

Explanation:

The average propensity to consume (APC) is the ratio of consumption expenditures (C) to disposable income (DI), or APC = C / DI. 

 

Hence, APC = consumption/income.

Correct Answer: Liability

Explanation:

Unearned revenue is the money or revenue earned for the product or the service that is not yet sold or provided to the customer. Hence, it comes under liabilities.

Correct Answer: Allocation

Explanation:

Depreciation is a process of cost allocation, not valuation. In accounting, the term depreciation refers to the allocation of cost of a tangible asset to expense to the periods in which the asset is expected to be used to obtain the economic benefit.

 

In brief, Depreciation is fall in the value of assets due to wear and tear over a period of time, it is a loss.

Correct Answer: Accounts-receivable financing is a type of asset-financing arrangement in which a company uses its receivables ? outstanding invoices or money owed by customers ? to receive financing when a business sells its AR (accounts receivable) to a factoring company and receives short-term business funding in return, this is what called as Accounts Receivable Financing How it works :: Business-to-business sales are often offered with payment terms of 30, 60 or 90 days The buyer receives the product, but doesn't submit payment until the mutually agreed-upon date The seller records the sale as revenues and increases the accounts receivable by the amount of the sale When the payment arrives, the seller decreases the accounts receivable and increases cash Accounts receivable financing allows the seller to get the cash immediately by selling the receivable to a third party This is called factoring

Correct Answer: spreading an investment across many diverse assets will eliminate some of the total risk

Explanation:

The principle of diversification tells us that spreading an investment across many diverse assets will eliminate some of the total risk.

Correct Answer: debt

Correct Answer: Asset

Explanation:

Accounts receivable is listed as a current asset in the balance sheet, since it is usually convertible into cash in less than one year as it is the amount owed by the customer to the seller.

 

Correct Answer: Accounts Receivable

Correct Answer: Bad debts expense often refers to the loss that a company experiences because it sold goods or provided services and did not require immediate payment The loss occurs when the customer does not pay the amount owed In other words, bad debts expense is related to a company's current asset accounts receivable You have already recorded the Rs 100 in your accounts receivable, and you need to eliminate that amount As you use double-entry accounting, you must record a Rs 100 credit to your accounts receivable and a Rs 100 debit to your allowance for doubtful accounts or your bad debts expense column