A Fair Gamble Is

question 3

Multiple Choice

A fair gamble is

• A)a risk where the participant can expect to win any amount greater than 0
• B)a risk where all possible outcomes are known to the participant
• C)a risk where the player has a 50% chance of winning and a 50% chance of losing
• D)a risky decision with an expected value of $0

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Definitions:

Employee Advance

A prepayment to employees by a company, often covering travel expenses or payment before the regular payroll date.

Notes Receivable

Claims held by a party for payments due from debtors, usually evidenced by a formal instrument of indebtedness such as a promissory note.

Allowance Method

An accounting approach to managing bad debts by estimating and recording uncollectable accounts receivable as an expense before the debts are known to be uncollectable.

Bad Debts Expense

The cost associated with the portion of accounts receivable that is estimated to be uncollectible during a fiscal period.