According to the Guidelines Issued by the Justice Department and Federal

question 69

Multiple Choice

According to the guidelines issued by the Justice Department and Federal Trade Commission in 1994, which of the following behaviors can be investigated?

• A)a merger of foreign companies that have significant sales in the United States
• B)conduct by foreign companies that does not have any foreseeable effect on U.S. companies' import business
• C)anticompetitive schemes by exporters that have a significant impact on the United States
• D)anticompetitive actions by U.S. firms selling to foreign governments

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Definitions:

Normal Balance

In accounting, the normal balance is the side (debit or credit) of an account that is usually increased. For example, asset accounts normally have a debit balance, while liabilities and equity accounts have a credit balance.

Direct Write-off Method

A method of accounting for bad debts that involves charging the amount of an uncollectible account directly to the expense account when it is deemed non-recoverable.

Uncollectible Receivables

Debts owed to a company that are considered to be uncollectable and are written off as a loss.

Debit Balance

Occurs when the total of debits in an account exceeds the total of credits, which can be typical for accounts like expenses, assets, and losses.