Examlex
Which of the following is not a way to manage risk?
Outstanding Checks
Checks that have been written and recorded in the issuing company's books but not yet cleared or deducted from the bank's cash balance.
Allowance Method
An accounting technique used to estimate and record bad debts expense from credit sales based on expected credit losses.
Uncollectible Account
An account receivable that cannot be collected due to the debtor being unable or unwilling to pay.
Bankruptcy
A legal proceeding involving a person or business that is unable to repay outstanding debts, resulting in the distribution of assets to creditors and discharge of debts.
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