Refer to Scenario: ConocoPhillips

question 122

Multiple Choice

Refer to Scenario: ConocoPhillips.ConocoPhillips is implementing a downsizing strategy that requires the elimination of specific work processes and functions.What type of downsizing strategy is it adopting?

• A)downsizing
• B)workforce reduction
• C)work redesign
• D)systematic change

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Definitions:

Liability Account

An accounting record that tracks the money owed by a business to creditors, lenders, and suppliers, part of the company's liabilities.

Direct Write-Off Method

This accounting practice writes off bad debts directly against income at the time they are determined to be uncollectible, bypassing any allowance account.

Allowance for Doubtful Accounts

This is an estimation of the amount of receivables that a company does not expect to actually collect, reflecting potential losses due to customers' inability to pay.

Uncollectible

Uncollectible refers to debts or receivables that are deemed to be impossible to collect, often resulting in a write-off by the business.