Use the Information Below to Answer the Following Questions

question 87

Multiple Choice

Use the information below to answer the following questions.
Fact 18.3.1 In Modern Rarity, Workers Form Union at Small Chain
In New York's low-income neighbourhoods, labour unions have virtually no presence. But after a year-long struggle, 95 workers at a chain of 10 sneaker stores have formed a union. After months of negotiations, the two sides signed a three-year contract that sets the wage rate at $7.25 an hour.
Source: The New York Times, February 5, 2006
-Refer to Fact 18.3.1. The winners from this contract are ________. The losers from this contract are ________.

• A)workers who keep their jobs; owners of the firms, consumers, and workers who are fired
• B)workers who keep their jobs and consumers; owners of the firms and workers who are fired
• C)the government; owners of the firms, consumers, and workers who are fired
• D)workers who keep their jobs and owners of the firms; workers who are fired
• E)workers who keep their jobs and owners of the firms; the government

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Definitions:

Aging of Receivables

Aging of receivables is an accounting method used to estimate the amount of a company's accounts receivable that may not be collectible, represented in time categories based on the length of time the invoices have been outstanding.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collected.

Bad Debt Expense

A ledger showing the value of invoices that a business anticipates it will not be able to receive payment for.

Aging of Receivables

A method for managing accounts receivable by categorizing debts by their due ages to estimate the timing of collections.