INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 27

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-Automobile medical insurance is designed to pay for injuries to the [driver of your car | members in the car you hit].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Accounts Receivable

Unsettled charges owed by clients to a company for the consumption or acquisition of goods or services.

Allowance Account

An account used in accrual accounting to estimate future adjustments, such as doubtful accounts or returns, affecting the value of asset accounts.

Percentage of Sales

A financial ratio illustrating how a particular figure on the financial statements reflects a certain percentage of the total sales.

Percentage of Receivables

A method used to estimate the amount of bad debt expense by calculating a fixed percentage of accounts receivable to be uncollectible.