An Account Is an Explanation a Manger Can Use to Smooth

question 29

Multiple Choice

An account is an explanation a manger can use to smooth over a perceived slight or to mitigate problems resulting from diverse perspectives; it is an important way to cope with conflicts resulting from cultural diversity. Which of the following types of accounts are accurately defined?

• A) Mitigating accounts: aimed at negotiating a compromise to lower tensions caused by an initial action
• B) Justification account: involves denying admission that an offensive action occurred
• C) Concession accounts: basically the same as justification accounts
• D) Ideological account: involves owning up to actions taken and admitting it was not legitimate to do so given the circumstances

---

Definitions:

Allowance Account

An account used to record adjustments for potential future losses or defaults on receivables, essentially reducing the value of accounts receivable to a more realistic figure.

Accounts Receivable

Debts incurred by customers to a company for using or obtaining its goods or services without making immediate payment.

Allowance Method

An accounting technique that adjusts accounts receivable for the estimated uncollectible amounts.

Accounts Receivable

Unsettled charges owed by clients to a company for the consumption or acquisition of goods or services.