Less Serious Crimes, Punishable by Fine or Imprisonment for Less

question 109

Multiple Choice

Less serious crimes, punishable by fine or imprisonment for less than a year, are generally classified as:

• A) torts
• B) fraud
• C) negligence
• D) procedural violations
• E) none of the other choices are correct

---

Definitions:

Adjustment

Entries made in preparing financial statements to allocate expenses or revenues to the appropriate accounting period.

Aging Report

A financial report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Allowance for Doubtful Accounts

This is a contra-asset account that reduces the total amount of accounts receivable reported on the balance sheet, reflecting the estimate of non-collectible amounts due to credit sales.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss.