Most of Us Tend to Look at a Tree and Classify

question 9

Multiple Choice

Most of us tend to look at a tree and classify it into the perceptual category of "trees in general" without really appreciating the miracle standing before us.When we take the time to stop and pay attention to "this miracle" that we previously ignored, then we are exhibiting

• A) habituation.
• B) deductive reasoning.
• C) inductive reasoning.
• D) dishabituation.

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Definitions:

Allowance for Doubtful Accounts

An accounting provision made by companies to account for anticipated losses due to customers' failure to pay owed amounts.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus reasonably predictable costs of completion, disposal, and transportation.

Uncollectible Accounts

Accounts receivable that are determined to be uncollectible from debtors, leading to them being written off as a business loss.

Allowance Method

An accounting technique that estimates and deducts accounts receivable deemed to be uncollectible from total receivables, creating an allowance for doubtful accounts.