Water Leaks into Homes Do More to Reduce Building Performance

question 18

True/False

Water leaks into homes do more to reduce building performance than any other construction problem.

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Definitions:

Write Off

The accounting action of declaring that an asset is partially or totally worthless, reducing its value to zero in the books.

Contra-Revenue Account

An account that is used to record reductions in gross revenue, such as sales returns, allowances, and discounts.

Allowance Method

An accounting technique used to account for bad debts by estimating uncollectible accounts at the end of each period.

Bad Debt Expense

An expense reported on the income statement, representing the amount of receivables that a company does not expect to collect due to customer default.