If the Office Space at This New Location Has Design

question 69

Multiple Choice

If the office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually,respectively,and 6,000 recruits will be processed per year,what will be the utilization of the office space?

• A) 50%
• B) 60%
• C) 75%
• D) 80%
• E) 100%

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported to reflect the amount that is expected to be uncollectible.

Bad Debt Expense

Bad debt expense is the cost associated with accounts receivable that a company cannot collect.

Allowance Method

An accounting technique to estimate and record bad debts expense, acknowledging that a certain percentage of accounts receivable may not be collectible.

Aging Receivables

A method of categorizing accounts receivable based on how long they have been outstanding to assess and manage credit risk.