Which of the Following Is NOT a Necessary Condition for Classification

question 143

Multiple Choice

Which of the following is NOT a necessary condition for classification as a value-added activity?

• A)The activity produces no change of state.
• B)The change of state was not achievable by preceding activities.
• C)Activity enables other activities to be performed.
• D)All of these are necessary conditions.

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Definitions:

Note Receivable Dishonored

Occurs when a debtor fails to fulfill the obligations of a promissory note they have issued.

Account Receivable

Account receivable is the money owed to a business by its customers for goods or services delivered but not yet paid for.

Bad Debts Expense

The cost reported by a company due to the unrecoverable credit it extended to its customers, representing expected losses from unpaid financial obligations.