Only Measures of Efficiency and Effectiveness, Not Equity, Should Be

question 14

True/False

Only measures of efficiency and effectiveness, not equity, should be included in a performance measurement system.

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Definitions:

Uncollectibles

Debts owed to a company that are considered unlikely to be recovered or paid.

Aging of Receivables

The process of categorizing accounts receivable by their due dates to estimate bad debt expenses.

Allowance Account

An account used to offset the total amount of accounts receivable due to the likelihood that some accounts will not be collected.