While Performing Needs Analysis, When Determining the Available Resources to Offset

question 31

Multiple Choice

While performing needs analysis, when determining the available resources to offset the economic needs, you would generally ignore:

• A)Social Security survivor's benefits .
• B)the children's educational qualifications.
• C)the earning potential of the surviving spouse.
• D)proceeds from assets that can be liquidated comfortably.
• E)the employer-provided group life insurance.

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Definitions:

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of credit sales that are not expected to be collected due to customer default.

Uncollectible Receivables

Refers to money owed to a company that it is unable to collect from its debtors, often considered as a bad debt expense.

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.