Just as Organisations Protect Their Tangible Assets-Keeping Their Money in an Insured

question 55

Short Answer

Just as organisations protect their tangible assets-keeping their money in an insured bank or providing a safe working environment for employees-they must also protect their ________ capital: everything from patents to transactional and analytical information.

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Definitions:

Allowance

An accounting practice that reduces the value of assets or income for the purpose of conservative financial reporting and tax savings.

Percentage of Receivables Method

The percentage of receivables method is an accounting technique used to estimate the amount of a company's accounts receivable that will not be collected, based on past experience.

Allowance for Doubtful Accounts

An accounting concept representing the estimated uncollectible amounts from customers' outstanding accounts.

Cash Realizable Value

The amount of cash expected to be obtained from the current sale or disposal of an asset after deducting any selling costs.