Conserving the Firm's Earning Power and Assets by Reducing the Threat

question 42

Short Answer

Conserving the firm's earning power and assets by reducing the threat of losses due to uncontrollable events is ________ management.
disaster
financial
risk
insurance
contingency

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Definitions:

Credit Memo

A document issued to a purchaser by a vendor to reduce the amount that the purchaser owes, often as a result of a return or refund.

Gross Profit

The difference between the revenue earned from sales and the cost of goods sold, not accounting for other expenses.

Inventory Shrinkage

Loss of products between purchase from a supplier and sale, often due to theft, damage, or errors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.