Organizations Should Try to Avoid Using Telephone Reference Checks Because

question 105

True/False

Organizations should try to avoid using telephone reference checks because they are less reliable than written references.

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Definitions:

Bad Debts Expense

An expense reported on the income statement, representing the amount of receivables that a company does not expect to collect due to customer default.

Adjusting Entries

Entries recorded in the journals at the close of an accounting period to assign income and costs to the period they truly relate to.

Allowance Method

A method of accounting for bad debts that involves estimating and setting aside a specific amount to cover potential credit losses.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss by a business.