Missy Owns and Operates Her Own Internet Consulting Firm

question 37

Short Answer

Missy owns and operates her own Internet consulting firm.While she recognizes the risks involved in operating a business,she is still willing to invest her time,effort,and money in hopes of earning a profit.Missy is an example of a(n)__________.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible, serving as a contra-asset on the balance sheet.

Bad Debt Expense

An expense reported by businesses to cover accounts receivable that are unlikely to be collected.

Adjusting Entry

Journal entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Written Instrument

A legal document delineating rights, duties, or liabilities, often used in financial and property transactions.