Information That Is in Suitable Form and Uses Appropriate Terms

question 43

Multiple Choice

Information that is in suitable form and uses appropriate terms and symbols that the receiver will know and interpret properly is:

• A)concise information.
• B)relevant information.
• C)understandable information.
• D)timely information.

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Definitions:

Uncollectible Account

Accounts receivable that cannot be collected from customers, often considered as bad debt.

Small Regular Payments

Recurring payments made on a consistent basis, often referring to installments or subscriptions of manageable amounts.

Closes Business

The process of halting operations and permanently shutting down a business entity.

Allowance for Doubtful Accounts

A contra-asset account on a company’s balance sheet that represents the estimated portion of accounts receivable that may not be collectible.