If Subway Made an Agreement Allowing Another Company to Use

question 224

Multiple Choice

If Subway made an agreement allowing another company to use its brand name on a new supermarket ready-to-eat sandwich, this would be called

• A) co-branding.
• B) brand extension.
• C) brand licensing.
• D) trademark licensing.
• E) cooperative branding.

---

Definitions:

Uncollectible Account

An account receivable that is considered to be uncollectible and is therefore written off as a loss.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable.

Write-off

The accounting action of declaring that an asset or receivable value is reduced or eliminated, often due to uncollectibility or obsolescence.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of receivables that may not be collectible.