_____ Is the Responsibility That Goes Well Beyond Societal Expectations

question 48

Multiple Choice

_____ is the responsibility that goes well beyond societal expectations to contribute to the community welfare.

• A) Ethical responsibility
• B) Discretionary responsibility
• C) Economic responsibility
• D) Legal responsibility
• E) Technical responsibility

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the costs necessary to make the sale.

Bad Debt Expense

A provision for accounts receivable that are considered unlikely to be collected.

Percentage of Credit Sales

An accounting method used to estimate bad debts expense by applying a fixed percentage to the total credit sales of a period.

Allowance Account

An accounting reserve established to adjust the carrying value of accounts receivable to their net realizable value, recognizing potential losses from uncollectible accounts.