In General, Efficiency Is Defined as

question 4

Multiple Choice

In general, efficiency is defined as

• A) output divided by input.
• B) input divided by output.
• C) output multiplied by input.
• D) output minus input.

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Definitions:

Allowance Method

An accounting technique used to estimate and account for bad debts, where companies anticipate some accounts receivable will be uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to recover, often treated as a bad debt expense.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet to reflect the amount expected to be uncollectable.

Allowance for Doubtful Accounts

An accounting method that reduces accounts receivable on a company's balance sheet by estimating the amount of receivables that will not be collected.