If a Company Fails to Record Estimated Bad Debts Expense

question 65

Multiple Choice

If a company fails to record estimated bad debts expense, then

• A) the carrying amount is understated.
• B) expenses are understated.
• C) revenues are understated.
• D) receivables are understated.

---

Definitions:

Duplication of Resources

The unnecessary repetition of tools, equipment, or human resources within an organization, leading to inefficiency.

Social Network Analysis

A methodological approach used to analyze social structures through the use of networks and graph theory, identifying how individuals and groups interact.

Informal Structures

Informal structures refer to the unofficial, often unacknowledged, networks and relationships that exist within an organization, influencing communication, decision-making, and social interactions.

Social Relationships

Connections between individuals based on mutual interests, social ties, or interactions that impact behavior and attitudes.