The Gap, Inc

question 89

Multiple Choice

The Gap, Inc. has targeted teenagers and young adults in need of casual clothes, and through its GapKids stores, the parents or guardians of infants through 12-year-olds. This is an example of:

• A) market segmentation.
• B) a collaborative effort between the company and its customers.
• C) a needs assessment.
• D) a mission statement.

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Definitions:

Uncollectible

Refers to accounts receivable that a company has deemed to be uncollectable and is likely to write off as a bad debt.

Direct Write-off Method

A method of accounting for bad debts in which companies write off receivables when they determine they are uncollectible.

Days' Sales in Receivables

A financial metric that measures the average number of days it takes for a company to collect payments from its credit sales.

Aging the Receivables

The process of categorizing accounts receivable according to the length of time an invoice has been outstanding.