A Private Business Might Develop a Linear Regression Model to Estimate

question 47

True/False

A private business might develop a linear regression model to estimate future sales based on past experience.

---

Definitions:

Accounts Receivable

Unpaid amounts by customers for goods or services already supplied by a company.

Write Off

The accounting action of declaring that an asset is partially or totally worthless, reducing its value to zero in the books.

Contra-Revenue Account

An account that is used to record reductions in gross revenue, such as sales returns, allowances, and discounts.

Allowance Method

An accounting technique used to account for bad debts by estimating uncollectible accounts at the end of each period.