Match the Definition with the Correct Term

question 24

Multiple Choice

Match the definition with the correct term.
-Individual who is not a U.S. citizen or resident.

• A)Expatriate
• B)Resident
• C)Nonresident alien
• D)U.S. trade or business
• E)Effectively connected income

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Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust the carrying value of the accounts.

Receivables

Receivables are amounts owed to a company by its customers or other parties for goods or services delivered but not yet paid for.

Uncollectible Accounts

Amounts owed to a company that it does not expect to collect due to customers being unable or unwilling to pay.

Allowance for Doubtful Accounts

An accounting provision made for receivables which may not be collectible.