Examlex
Which of the following is a responsibility of the State Department?
Allowance for Doubtful Accounts
A contra account that reduces the total receivables on the balance sheet to reflect the amount that is expected not to be collected.
Selling Receivables
The process of selling a company's outstanding invoices to a third party to improve cash flow and reduce risk.
Risk
The possibility of experiencing loss or other adverse effects in business or investment.
Allowance Method
An accounting technique to estimate and record bad debts by recognizing a provision for accounts receivable that might not be collected.
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