Any Activity That Costs a Facility Either Money or Its

question 15

Multiple Choice

Any activity that costs a facility either money or its reputation is known as

• A) risk management.
• B) risk assessment.
• C) risk analysis.
• D) loss potential.

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Definitions:

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.

Income Statement

A financial statement showing a company's income, expenses, and profits over a specified period, typically a quarter or year.