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An Advertiser Wants to Improve Return on Investment (ROI)

question 111

Multiple Choice

An advertiser wants to improve return on investment (ROI) . The advertisement notices that users have often clicked on an ad without purchasing. After ensuring that keywords and ad text are highly relevant to one another, which is the best course of action for the advertiser to take?


Definitions:

Direct Write-off Method

An accounting approach where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.

Uncollectible Accounts Receivable

Debts owed to a company that are considered to be uncollectible from the debtor, often leading to the account being written off as a bad debt expense.

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collectible, serving as a contra account to adjust the value of total receivables.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs associated with its sale or disposal.

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