Some Organizations Try to Save Money by Wrongly Classifying Regular

question 30

Multiple Choice

Some organizations try to save money by wrongly classifying regular employees as __________.

• A) independent contractors
• B) independent outworkers
• C) outworkers at will
• D) contractors at will

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Definitions:

Uncollectible

Refers to debts that have been deemed uncollectible from debtors, often written off as a loss by the business.

Income Statement Approach

A method for preparing the bad debt expense by estimating the amount of accounts receivable that will not be collected and adjusting the allowance for doubtful accounts accordingly.

Bad Debts Expense

The cost associated with accounts receivable that a company does not expect to collect due to customer default.

Receivables

Receivables, often called accounts receivable, are the funds owed to a company by clients or customers for goods or services already delivered or used but not yet paid for.