A Risk-Benefit Analysis

question 10

Multiple Choice

A risk-benefit analysis

• A)requires a finding of breach of duty for substantial harm
• B)cannot apply in a state that uses the Andrews test for duty
• C)is also called proximate cause
• D)determines whether the risks outweigh the benefits

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of sales revenue.

Allowances Account

An account used to offset the gross accounts receivable balance for the estimated amount of uncollectible accounts.

Credit Sale

A transaction where the goods or services are provided to the customer with payment to be made at a later date.

Accounts Receivable

This refers to the amount of money customers are yet to pay a company for the products or services which have already been provided.