What Would Be an Example of a Performance Report

question 12

Multiple Choice

What would be an example of a performance report?

• A) An income statement reporting actual results for the past month.
• B) An income statement showing the amounts budgeted for the past month.
• C) A balance sheet showing the actual financial position at the end of the past month.
• D) A production report showing budgeted and actual production for the past month.

---

Definitions:

Non-inventory

Refers to items or services sold by a business that are not kept in inventory, such as consulting services.

Allowance Method

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

Uncollectible Accounts Expense

An expense reported on the income statement, pertaining to the debt owed to a company that is unlikely to be recovered.

Percentage Of Credit Sales

A method used to estimate bad debts expense, based on the percentage of sales made on credit that are expected to be uncollectible.