Plutus Inc

question 24

Multiple Choice

Plutus Inc. has its headquarters in the U.S. and has a facility in Germany. A virtual team operates from around the globe with most members from China. China is a _____ country for Plutus.

• A)home
• B)domestic
• C)parent
• D)third
• E)host

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Definitions:

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Bad Debt Expense

A projected expense reported by companies accounting for receivables that are expected to remain uncollected.

Pre-Reconciliation Cash Balance

The initial cash balance reported before adjustments are made for reconciling items in the preparation of a bank reconciliation.

Outstanding Checks

Checks that have been written and recorded in the issuer's account but have not yet been cashed or deposited by the recipient.