Using a File-Oriented Approach to Data and Information,data Is Maintained

question 35

Multiple Choice

Using a file-oriented approach to data and information,data is maintained in

• A)a centralized database.
• B)many interconnected files.
• C)many separate files.
• D)a decentralized database.

---

Definitions:

Allowance for Doubtful Accounts

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

Bad Debts Expense

Bad debts expense is the cost associated with accounts receivable that a company does not expect to collect due to customers being unlikely to pay.

Credit Balance

A situation where the total credits in an account exceed the total debits.

Aging

A method used in accounting to categorize and assess the financial health of receivables or inventory based on the period they have been outstanding or in stock, respectively, to identify potential losses or risks.