The List of Financial Institutions That Either Failed or Were

question 79

Multiple Choice

The list of financial institutions that either failed or were merged with other firms or bailed out by the federal government during financial crisis of 2007-2009 include all of the following except:

• A)Lehman Brothers
• B)American International Group
• C)Merrill Lynch
• D)Washington Mutual
• E)All of the above firms failed, merged or were bailed out

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Definitions:

Aging of Accounts Receivable

A process of categorizing accounts receivable based on how long they have been outstanding to estimate potential uncollectible amounts.

Allowance for Doubtful Accounts

An accounting provision made by companies to account for anticipated losses due to customers' failure to pay owed amounts.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus reasonably predictable costs of completion, disposal, and transportation.

Uncollectible Accounts

Accounts receivable that are determined to be uncollectible from debtors, leading to them being written off as a business loss.