When Responding to a Request for Adjustment When a Third

question 32

Multiple Choice

When responding to a request for adjustment when a third party is at fault,the best approach is to

• A)refuse the claim and suggest that the customer sue the third party.
• B)refuse the claim but forward the paperwork to the third party.
• C)avoid placing blame and focus on the solution.
• D)advise the customer never to do business with that third party again.
• E)ignore the claim.

---

Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as stockholders' equity or owners' equity.

Liquid Assets

Assets that can be quickly and easily converted into cash with minimal impact on their value.

Cash Equivalents

Short-term investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Receivables

Amounts owed to a company by its customers or other parties for goods or services that have been delivered or used, but not yet paid for.