Simplify the Fraction $\frac { 16 } { 18 }$ A) $\frac { 1 } { 8 }$

question 46

Multiple Choice

Simplify the fraction. $\frac { 16 } { 18 }$

• A) \(\frac { 1 } { 8 }\)
• B) \(\frac { 1 } { 9 }\)
• C) \(\frac { 9 } { 8 }\)
• D) \(\frac { 8 } { 9 }\)
• E) \(\text { undefined }\)

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that a company can no longer collect because they are considered uncollectible.

Earnings Levels

Different tiers or amounts of profitability achieved by a business during a specific period.

Ratio of Allowance

A financial metric used to assess the adequacy of an allowance for doubtful accounts or loan losses, often compared to total receivables or loans.

Sales Revenue Approach

A method to recognize revenue based on the sales of goods or services, highlighting the importance of sales activities in generating income for the business.