Bad Debts

question 8

Multiple Choice

Bad debts:

• A)are sales where the customer returns the goods.
• B)occur when debtors do not pay their accounts.
• C)is just another term for doubtful debts.
• D)are all of the above.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.

Payables

Amounts owed by a company to suppliers or creditors for goods and services received.

Inventory

The raw materials, work-in-progress products, and completely finished goods that are considered to be the portion of a business's assets that is ready or will be ready for sale.

Asynchronization

The lack of synchronization; occurring not simultaneously or at different times or rates.