Examlex
The covariance between two investments is equal to the sum of the variances of the investments.
Bad Debts Expense
An expense account representing the estimated amount of receivables that a company does not expect to collect.
Depreciating
The process of allocating the cost of a tangible asset over its useful life, reflecting a decrease in its value over time.
Accounts Receivable
Amounts owed to a business by customers for goods or services delivered but not yet paid for, represented as a current asset on the balance sheet.
Allowance Method
A method in accounting used to estimate bad debts expense by anticipating which accounts receivable may not be collected.
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