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Case 2-2
Life Decisions Cyber Cafe is a cafe with free Internet service and computers that are linked to various online career opportunities. They have set up their computers to display their Web site to help users have a starting point
-The owner wants to add his e-mail address as a link so customers can send questions to him directly.What should he be most concerned with when designing the links?
Bad Debts Expense
Bad debts expense is the cost to a business of accounts receivable that are not collected because customers are unable to pay.
Allowance for Doubtful Accounts
An accounting provision made for accounts receivable that may not be collectible.
Balance Sheet Approach
A method of estimating allowances and provisions based on the balances of assets and liabilities, rather than focusing primarily on income statement items.
Income Statement Approach
A method of accounting or financial analysis focusing on revenues, expenses, and net income to evaluate a company's performance over a period.
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