A Newly Created Design Business Called Smart Art Is Just

question 32

Multiple Choice

A newly created design business called Smart Art is just finishing up its first year of operations.During the year,there were credit sales of $40,000 and collections of $36,000.One account for $650 was written off.Smart Art uses the percent-of-sales method to account for uncollectible account expense,and has decided to use a factor of 2% for their year-end adjustment of uncollectible account expense.
-At the end of the year,what is the ending balance in the Allowance for uncollectible accounts?

• A) $150
• B) $800
• C) $250
• D) $1,450

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Definitions:

Diversified Portfolio

An investment strategy that involves spreading investments across various asset classes to reduce risk.

Investment Horizon

The length of time an investor expects to hold an investment before liquidating it.

Pension Funds

Investment pools that collect and invest funds contributed by employers and employees for the purpose of generating retirement benefits.

Mutual Funds

Investment schemes that are financed by investors, which operate in a variety of holdings and are overseen by professional managers.