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How Do Companies Account for Allowance for Doubtful Accounts on the Cash

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Essay

How do companies account for allowance for doubtful accounts on the cash flow statement?


Definitions:

Stimulus Discrimination

The tendency to stop making a generalized response to a stimulus that is similar to the original conditioned stimulus because the similar stimulus is never paired with the unconditioned stimulus.

Extinction

Extinction refers to the process in conditioning where the occurrence of a conditioned response decreases or disappears when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Acquisition

The process of learning or obtaining new information or skills.

Spontaneous Recovery

Refers to the sudden reappearance of a previously extinguished response in the absence of further conditioning.

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