Lost-For-Good Accounts Can Also Be Described As

question 70

Multiple Choice

Lost-for-good accounts can also be described as:

• A) Unprofitable accounts
• B) Profitable accounts
• C) Stuck-for-a-while accounts
• D) Inappropriate accounts
• E) Accounts-of-poor-fit

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash with original maturities of three months or less.

Allowance Method

A method in accounting that involves estimating the accounts that are uncollectible at the end of each period to account for bad debts.

Receivables

Amounts owed to a company by customers or other parties as a result of the company providing goods or services on credit.

Bankruptcy

A judicial process concerning an individual or enterprise that cannot fulfill its debt obligations.