The Optimal Disaster Recovery Plan in Terms of Cost and Time

question 180

Multiple Choice

The optimal disaster recovery plan in terms of cost and time is where on the disaster recovery cost curve?

• A) Where the two cost effects intersect
• B) When the cost to the company of unavailability of information and technology is high
• C) When the cost to the company of recovering from a disaster over time is high
• D) When the two cost effects are furthest apart

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Definitions:

Uncollectible Notes

Loans or promissory notes that have been deemed uncollectible by the creditor due to the borrower's inability to pay.

Bad Debts Expense

Bad debts expense represents the estimated amount of accounts receivable that a company does not expect to collect due to customers' inability to fulfill payment obligations.

Notes Receivable

Financial assets representing the right to receive payments from a debtor for a specified amount by a certain date.

Receivables Turnover

A financial ratio indicating how quickly a company collects outstanding accounts receivable.