Long-Term Customer Relationships ________ the Cost of Information Collection and Make

question 26

Multiple Choice

Long-term customer relationships ________ the cost of information collection and make it easier to ________ credit risks.

• A)reduce;screen
• B)increase;screen
• C)reduce;increase
• D)increase;increase

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Definitions:

Substantially Completes

A phrase indicating that a project or task is nearly finished or that a significant portion of the work has been accomplished.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Mismatching Problems

Issues that arise when expenses are recognized in a different period than the revenues they help to generate, potentially distorting financial statements.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.