Which of the Following Situations Would Be Least Likely to Justify

question 32

Multiple Choice

Which of the following situations would be least likely to justify high control costs?

• A) nuclear power plants
• B) military weapons units
• C) customer service call centers
• D) federal air traffic control agencies

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Definitions:

Allowance for Doubtful Accounts

A contra asset account that represents the estimated portion of accounts receivable that may not be collectible.

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable and adjust the amount of accounts receivable reported on the balance sheet.

Accounts Receivable

Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.

Allowance for Doubtful Accounts

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