________ Set an Upper Limit on the Interest Rate That

question 9

Multiple Choice

________ set an upper limit on the interest rate that can be charged on certain types of loans.

• A) Federal banking reforms
• B) State usury laws
• C) Congressional committees
• D) Chambers of commerce

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Definitions:

Uncollectible Account Receivable

An accounting term for receivables from sales that are considered not collectible, resulting in a bad debt expense.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and thus writes off as a loss.

Direct Write-off Method

An accounting practice where uncollectable debts are written off against income at the time they are deemed non-collectable.

Allowance Method

An accounting technique that estimates uncollectible accounts receivable to record bad debts expense, reflecting more accurate accounts.