In the IT Arena,hiring the Services of Another Company to Manage

question 28

Multiple Choice

In the IT arena,hiring the services of another company to manage all or parts of the services that otherwise would be rendered by an IT unit of the organization is known as .

• A)outsourcing
• B)licensing
• C)tracking
• D)benchmarking

---

Definitions:

Written-off

The accounting practice of recognizing that an asset or receivable no longer has value and is unlikely to be collected.

Bad Debts Expense

The cost to a business of uncollectible accounts receivable.

Accounts Receivable

Financial obligations of customers towards a firm for delivered services or goods yet to be paid for.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.