Which of the Following Statements About the SWOT Analysis Is

question 57

Multiple Choice

Which of the following statements about the SWOT analysis is accurate?

• A) SWOT analysis is a rigorous method for selecting strategies.
• B) SWOT analysis is a brainstorming technique for generating creative ideas.
• C) SWOT analysis is useful for identifying a business's closest competitors.
• D) SWOT analysis examines the situations faced by the competitors in an industry.
• E) SWOT analysis is routinely used for identifying strategic groups within an industry.

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Definitions:

Bad Debt Expense

An anticipated expense recorded in the accounts to allow for customers' debts that have been deemed unrecoverable.

Journal Entries

Records of financial transactions in the accounting system, showing accounts affected, amounts, and date.

Allowance Account

An account used in accounting to reflect anticipated losses from accounts receivable that might not be collected.

Direct Write-Off Method

A method of accounting for bad debts whereby companies directly remove (write off) uncollectible amounts from accounts receivable when they are deemed uncollectible.