Which of the Following Is NOT One of the Reasons

question 47

Multiple Choice

Which of the following is NOT one of the reasons for new business failure described in your text?

• A)Sufficient capital
• B)Incompetence
• C)Neglect
• D)Weak control systems
• E)Inexperience

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Definitions:

Net Credit Sales

Sales made on credit minus any returns or allowances, indicating the actual credit sales revenue generated during a period.

Balance Sheet Approach

A method in financial analysis that focuses on the balance sheet and its components: assets, liabilities, and equity.

Allowance for Doubtful Accounts

An accounting concept representing the estimated amount of receivables that may not be collected, thereby reducing accounts receivable to a more realistic value.

Adjustment

An accounting entry made into the books before the preparation of financial statements to allocate income and expenditure to the correct period.