Identifying Alternative Future States of Affairs That May Occur and Then

question 34

Multiple Choice

Identifying alternative future states of affairs that may occur and then developing plans to deal with each case should it actually occur is known as:

• A) contingency planning.
• B) participation.
• C) scenario planning.
• D) benchmarking.
• E) forecasting.

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Definitions:

Gross Accounts Receivable

The total amount owed to a business by its customers before adjusting for any allowances for doubtful accounts.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of receivables a company does not expect to collect.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collected, used to anticipate and adjust for bad debts.

Financial Statement

Documents detailing how a business has performed financially over a specific period, featuring comprehensive insights into its income, expenses, and overall financial health.