Jacob Is in Middle School

question 47

Multiple Choice

Jacob is in middle school. He tells his friends that he is worried that he would fail in his biology test because the biology project reviewer deliberately asked him tough questions that he could not answer. This scenario illustrates the _____.

• A) self-fulfilling prophecy
• B) external attribution style
• C) Pygmalion effect
• D) boomerang effect

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, which is used to adjust the gross accounts receivable to its net realizable value.

Estimate

An approximate calculation or judgment of the value, number, quantity, or extent of something, often used in planning and decision-making.

Balance Sheet Approach

A method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the Allowance for Doubtful Accounts will bring the new balance of that account to the new required level.

Bad Debts Expense

The portion of receivables that a company does not expect to collect and writes off as a loss.