The CBCA

question 35

Multiple Choice

The CBCA

• A)applies to every corporation that operates in Canada.
• B)requires, as part of the incorporation process, a name search that shows that the proposed name for the corporation is not already in use in Canada.
• C)provides the model for the corporation legislation that exists in every province in Canada.
• D)applies only to corporations that conduct business in areas that, according to sections 91 and 92 of the Constitution, fall within the legislative authority of the federal government.
• E)governs most types of business organizations, including partnerships and sole proprietorships.

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Definitions:

Uncollectible Receivables

These are amounts due to a company from its customers that are considered unlikely to be collected.

Adjusting Entry

An accounting entry made at the end of an accounting period to record unrecognized income or expenses to ensure that the accounting records are accurate.

Allowance for Doubtful Accounts

A contra-account reducing accounts receivable on a balance sheet, reflecting the amount of receivables a company believes it will not collect.

Estimated Uncollectible

The anticipated portion of receivables that a company expects not to collect.