The Simple List of Activities Identified in an ABC System

question 33

Multiple Choice

The simple list of activities identified in an ABC system is called:

• A)Activity inventory
• B)Activity dictionary
• C)Activity attributes
• D)Activity driver

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Definitions:

Percentage of Credit Sales Method

An accounting technique used to estimate the value of uncollectible accounts receivable based on a historical percentage of sales that resulted in bad debts.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Credit Losses

Financial losses that a lender anticipates or experiences due to borrowers failing to make required payments.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of receivables that may not be collectible.