An Area That Is a Seismic Gap

question 133

Multiple Choice

An area that is a seismic gap

• A)is overdue for an earthquake,based on past earthquake frequency.
• B)has significant surface fracturing due to fault movement.
• C)has had tectonic plates separate,leaving large cracks in the surface.
• D)is lacking seismometers or other measuring devices.
• E)cannot have an earthquake because the rock cannot transmit energy.

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Definitions:

Bad Debts Expense

An expense reported on the income statement, representing the amount of receivables a company cannot collect from its customers during an accounting period.

Credit Sale

A transaction in which goods or services are provided to a customer with the understanding that payment will be made at a later date.

Allowance Method

An accounting technique used to account for future losses on receivables that are considered likely to become uncollectible.

Net Accounts Receivable

The amount of money owed to a company by its customers minus the provision for bad debts.