Considerations in the Selection of a Proper Marketable-Securities Mix Include

question 132

Multiple Choice

Considerations in the selection of a proper marketable-securities mix include all of the following EXCEPT

• A) financial risk.
• B) interest rate risk.
• C) maturity.
• D) liquidity.

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Definitions:

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.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable which may not be collected.