----- Represent Claims for the Payment of a Sum of Money

question 15

Multiple Choice

----- represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.

• A)Physical asset
• B)Fixed asset
• C)Financial asset
• D)All the above

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Definitions:

Allowance for Doubtful Accounts

A financial accounting tool used to estimate the amount of receivables that will likely be uncollectable.

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from customers or clients, typically recorded as an expense.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay at a later date.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable which may not be collected due to customer defaults.