The Entry to Create a General Reserve Is Usually:
A) $\quad$

question 9

Multiple Choice

The entry to create a general reserve is usually:

• A) Dr General reserve\(\quad \) \(\quad \) Cr Retained profits.
• B) Dr Retained profits\(\quad \) \(\quad \) Cr General reserve.
• C) Dr Profit and loss\(\quad \) \(\quad \) Cr General reserve.
• D) Dr Expense\(\quad \) \(\quad \) \(\quad \) Cr General reserve.

Know how to organize and structure messages conveying bad news to different stakeholders.

Gain insights into the proper use of technology and social media in communicating negative messages.

Understand legal and psychological implications of layoffs and how to communicate such decisions.

Identify phrases to avoid in negative messages.

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Definitions:

Uncollectible Accounts

Debts from customers that are considered to be uncollectible and are therefore written off as an expense.

Allowance Method

A technique in accounting to estimate and deduct bad debts from accounts receivable based on historical data and projections.

Uncollectible Accounts

Accounts receivable that a company has determined it will not be able to collect due to customer default.

Direct Write-off

A method of accounting for bad debts where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.