Using Information Not Available to the Public to Unfairly Benefit

question 330

Multiple Choice

Using information not available to the public to unfairly benefit in the stock market represents

• A) security fraud.
• B) an unethical, but a legal activity.
• C) blue-sky violations.
• D) insider trading.

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Definitions:

Aging of Receivables

Aging of receivables is an accounting method used to estimate the amount of a company's accounts receivable that may not be collectible, represented in time categories based on the length of time the invoices have been outstanding.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collected.

Bad Debt Expense

A ledger showing the value of invoices that a business anticipates it will not be able to receive payment for.

Aging of Receivables

A method for managing accounts receivable by categorizing debts by their due ages to estimate the timing of collections.