Which of the Following Arguments on Social Responsibility States That

question 66

Multiple Choice

Which of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct?

• A) superiority of prevention over cures
• B) possession of resources
• C) accountability
• D) skills

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Definitions:

Bad Debts Adjustment

An accounting entry made to account for invoices that are not expected to be collected due to customer default.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Direct Write-off Method

A method of accounting for bad debts that directly writes off specific debts as they are deemed unrecoverable.

Uncollectible Accounts

Uncollectible accounts are debts from customers that a company has attempted to collect but determined they cannot be recovered and are thus written off as a loss.