In Determining Its Rating, DBRS Looks at Which of the Following

question 10

Multiple Choice

In determining its rating, DBRS looks at which of the following factors?

• A)Core profitability
• B)Balance sheet strength
• C)Business strength
• D)Strategy and management strength
• E)All of the above

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Written off Accounts

Accounts deemed uncollectible and therefore removed from the accounts receivable balance in the financial statements.

Allowance for Doubtful Accounts

An estimate of the receivables that may not be collected, reducing gross receivables to a more realistic net value.

Uncollectible Receivables

Accounts receivable that a company has determined are unlikely to be collected and thus are written off as a bad debt expense.