Analyzing Your Current Financial Position Is a Part of Which

question 89

Multiple Choice

Analyzing your current financial position is a part of which step of the financial planning process:

• A)Step 1,Determine current financial situation
• B)Step 2,Develop financial goals
• C)Step 3,Identify alternative courses of action
• D)Step 4,Evaluate alternatives
• E)Step 5,Create and implement the action plan

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Definitions:

Allowance Method

An accounting technique used to estimate and account for bad debts where the company anticipates a certain percentage of accounts receivable will be uncollectible.

Bad Account

An account receivable that has been deemed uncollectible and is written off as a loss.

Pre-Reconciliation Cash Balance

The cash balance reported in accounting records before adjustments are made for reconciling items in a bank reconciliation.

Outstanding Checks

Checks that have been written and recorded in a company's financial ledger but have not yet been cashed or cleared by the bank.