_____________ Refers to the Strategy of Anticipating Failure and Then

question 218

Multiple Choice

_____________ refers to the strategy of anticipating failure and then compensating for this expectation by mentally overpreparing for negative outcomes.

• A)Temperance
• B)Defensive pessimism
• C)Countermeasures
• D)False negatives

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Definitions:

Uncollectible Accounts Receivable

Money owed to a company that it does not expect to collect due to the debtor's inability to pay.

Bad Debt Expense

This represents the amount of receivables a company believes it can no longer collect, reflecting potential losses for accounts receivable or loans that are not expected to be fully paid.

Allowance

A reduction from the gross amount of an asset to recognize a reduction in its value.

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of receivables that a company does not expect to collect.