Consumers Tend to Accept the Market Restrictions Imposed by Suppliers

question 13

Multiple Choice

Consumers tend to accept the market restrictions imposed by suppliers because:

• A) government prevents them from organizing.
• B) they see themselves as laborers and therefore benefit from restrictions.
• C) their costs of organizing are higher than the cost of the collusion by the suppliers.
• D) when combined, their losses are small for the group as a whole.

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Definitions:

Uncollectible Percentage

An estimated fraction of accounts receivable that a company does not expect to collect.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding.

Allowance Account

An account used in accounting to reduce the value of accounts receivable to a more realistic amount by accounting for potential bad debts.

Uncollectibles

Debts owed to a company that are considered unlikely to be recovered or paid.