What Is a Disaster

question 14

Multiple Choice

What is a disaster?

• A)The ability of a company to recover from a catastrophe and get back to business as usual
• B)Any event or occurrence that can have a detrimental effect on an organization either in whole or in part
• C)Any event or occurrence that can have a lasting effect on an organization either in whole or in part.
• D)All of the above

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Definitions:

Cash Collection

The process of gathering and managing payments received from customers.

Discount Period

The period between the issuance of a bill, note, or bond and its maturity date, during which it may be purchased at a reduced price to yield interest upon redemption at full price.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects its outstanding receivables over a period, calculated as sales divided by average accounts receivable.

Uncollectible Account

Accounts receivable that are deemed irrecoverable and are written off as a loss because the debtor is unable to pay.