A Straight Rebuy

question 61

Multiple Choice

A straight rebuy:

• A)occurs when an organization faces a new and unique need or problem,one in which buying center members have little or no experience.
• B)occurs when purchased goods have to be returned or exchanged because the organization's needs have changed.
• C)involves purchasing a common product or service the organization has bought many times before.
• D)involves purchasing products that are somewhat different from,but extensions of,products previously purchaseD.

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Definitions:

Direct Write-off Method

An accounting practice where uncollectible accounts receivable are written off to expense only when they are determined to be non-recoverable.

Adjustment

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Percent of Sales Method

A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are written off as a bad debt expense.