An Agreement Between the Importing Country and the Exporting Country

question 11

Multiple Choice

An agreement between the importing country and the exporting country for a restriction on the volume of exports is called a(n) :

• A) tariff.
• B) standards option.
• C) voluntary export restraint(VER).
• D) trade block.
• E) documentation requirement.

---

Definitions:

Bad Debt Expense

An expense account representing the estimated uncollectible accounts receivable.

Direct Write-off Method

An accounting method where bad debts are expensed only when specific accounts are deemed uncollectible and written off.

Uncollectible Accounts Expense

Uncollectible accounts expense is the cost associated with receivables that a company does not expect to collect, impacting the net income and accurate representation of receivables.

Allowance Method

An accounting technique used to estimate and account for bad debts or credit losses.