A General Principle of Regulation Is

question 78

Multiple Choice

A general principle of regulation is:

• A)do not offset the moral hazard problem.
• B)set as few bad precedents as possible.
• C)let banks fail regardless of the effect on the economy.
• D)the need to reduce regulations over time.

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Definitions:

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs necessary to make the sale.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Written Off

The process of acknowledging that a debt is uncollectible and removing it from the accounts.

Bad Debts Expense

An estimated expense that represents the amount of receivables that are not expected to be collected.