Top Management at Lancer Distributing Is Convinced That They Have

question 14

Multiple Choice

Top management at Lancer Distributing is convinced that they have a social responsibility to their community.They believe that they can have the greatest impact in this area through cash contributions to nonprofit organizations.This is an example of corporate:

• A)short run profit maximization.
• B)guilt payments.
• C)structure and strategy.
• D)philanthropy.

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over during a period.

Specific Accounts

Refers to accounts designated for specific purposes or transactions, distinguishing them from general or combined accounts.

Uncollectible

Refers to accounts receivable that a company has deemed to be uncollectable and is likely to write off as a bad debt.

Direct Write-off Method

A method of accounting for bad debts in which companies write off receivables when they determine they are uncollectible.