A Government Corporation

question 18

Multiple Choice

A government corporation

• A) is based on the idea that a market exists of customers willing to pay for services provided.
• B) relies on revenue primarily derived from payment for services provided.
• C) often is kept in business by government intervention.
• D) Options A, B, and C are true.
• E) None of the above is true.

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Definitions:

Allowance Method

An accounting technique used to estimate and anticipate uncollectible accounts receivable and bad debts.

Reinstated Account

An account previously closed or inactivated that has been restored to active status.

Uncollectible Receivables

Debts that are deemed unrecoverable by a company after exhaustive attempts to collect them, often written off as an expense.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.