Which of the Following Is a True Statement

question 2

Multiple Choice

Which of the following is a true statement?

• A) If a product advertises that it will not hurt the environment, it is better to spend the extra money to buy it
• B) Organic shampoos are better for the environment and for you
• C) Any business that goes to the considerable trouble of advertising itself as "green" can usually be counted on to be environmentally conscious
• D) Buying fewer things is an important means of protecting the environment
• E) All of these are true statements

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Definitions:

Percent of Sales Method

A financial forecasting model that estimates changes in balance sheet and income statement accounts as a direct percentage of sales.

Uncollectibles

Debts owed to a company that are considered to be unlikely to be paid and written off as a loss.

Bad Debt Expense

An expense account reflecting amounts that are not expected to be collected from debtors due to their inability to pay.

Accounts Receivable

Funds that customers are required to pay to a company for products or services already received but yet to be paid for.