Which Is Not an Example of an Industry

question 108

Multiple Choice

Which is not an example of an industry?

• A) software firms
• B) automobile companies
• C) fashion companies
• D) government agencies
• E) cable television organizations

Calculate and interpret the carrying amount of installment notes over different periods.

Recognize the characteristics and accounting treatments of different types of liabilities, including remote and probable contingencies.

Understand the significance and calculation methods of working capital, current ratio, and quick assets.

Understand and apply the concept of working capital, quick ratio, and current ratio.

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Definitions:

Uncollectible Receivables

Refers to money owed to a company by its debtors that is unlikely to be paid and is considered a loss.

Allowance Method

A technique in accounting used to estimate and anticipate bad debts (uncollectible accounts receivable) and adjust the books accordingly.

Allowance for Doubtful Accounts

A contra-asset account on a company's balance sheet that represents the estimated portion of accounts receivable that may not be collectible.

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable deemed uncollectible as an allowance for doubtful accounts.