To Increase Profitability,technology Companies Such as IBM Have Shifted Their

question 53

Multiple Choice

To increase profitability,technology companies such as IBM have shifted their strategic focus toward:

• A)Increasing equipment sales.
• B)Improving software applications.
• C)Providing new and enhanced customer services.
• D)Increased focus on research and development.

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Definitions:

Estimating Bad Debts

The process of forecasting the amount of credit sales that are not expected to be collected, to account for potential losses.

Allowance Method

A method of accounting for bad debts that involves estimating and setting aside an allowance for doubtful accounts.

Uncollectible Account

An account receivable that is considered to be uncollectible and is therefore written off as a loss.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable.