Alex,the Founder of a New Venture,is in the Process of Developing

question 8

Multiple Choice

Alex,the founder of a new venture,is in the process of developing a business plan.He develops an overall plan for the project with details of draft deadlines.What is the next step he is likely to take?

• A) Develop detailed résumés of the key people in his venture.
• B) Develop the pro forma to be include in the plan.
• C) Create an action calendar.
• D) Create a more specific list of tasks.

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Definitions:

Credit Sales

Sales where the customer is allowed to pay for the product or service at a later date, extending credit.

Bad Debt Expense

The estimated amount of accounts receivable that is not expected to be collected.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that may not be collectible, reflecting potential losses due to credit sales.

Uncollectible Receivables

Debts owed to a company that are considered unlikely to be paid by the debtor.