An Assessor Determines That Farley Is Incompetent to Stand Trial

question 71

Multiple Choice

An assessor determines that Farley is incompetent to stand trial.This means that Farley

• A) is unable to understand the charges against him and is unable to assist in his defense.
• B) is mentally retarded or psychotic.
• C) may have been under the influence of alcohol or some controlled substance at the time the alleged offense was committed.
• D) All of these

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Allowance for Doubtful Accounts

An estimation of accounts receivable that a company does not expect to collect, appearing as a contra-asset account on the balance sheet.

Net Credit Sales

The net income generated from credit sales after subtracting any returns or allowances.

Aging Analysis

A method used to estimate the collectability of accounts receivable by categorizing receivables by their age (time outstanding).