A Common-Size Balance Sheet Will Express Accounts Receivable as a Percentage

question 58

Multiple Choice

A common-size balance sheet will express accounts receivable as a percentage of

• A)sales.
• B)current assets.
• C)net working capital.
• D)total assets.
• E)total owners' equity.

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Definitions:

Uncollectible Accounts

Accounts receivable that a business does not expect to collect and writes off as a loss.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Uncollectible Accounts

Uncollectible accounts are debts owed to a company that are considered uncollectable and are written off as a bad debt expense.