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Contrast is characterized on the H&D curve by
Compensating Balance
A minimum account balance that a borrower must maintain as a condition for borrowing from a bank.
Short-Term Borrowings
Loans or debt obligations that are due for repayment within one year.
Direct Write-Off Method
A method of accounting for bad debts that charges the amount of an outstanding account directly to the expense account at the time it is deemed uncollectible.
Net Realizable Value
The estimated selling price in the ordinary course of business minus the estimated costs of completion and the estimated costs necessary to make the sale.
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