There Are Three Major Types of Business Activities

question 6

Short Answer

There are three major types of business activities. ________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

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Definitions:

Allowance for Doubtful Accounts

An accounting concept used to estimate the portion of accounts receivable that may not be collected.

Net Credit Sales

The total revenue from sales made on credit, after subtracting returns and allowances.

Uncollectible Accounts

Accounts receivable that a company does not expect to receive payment for, often written off as bad debts.

Percentage-of-Receivables Method

An accounting method used to estimate the amount of a company's receivables that will not be collected, based on a percentage of the total receivables.