What Is a Feature or Benefit of Comparative Reporting

question 20

Multiple Choice

What is a feature or benefit of comparative reporting?

• A) It arranges records in order of severity of the problem with the most severe at the beginning of the report.
• B) It arranges together actual data for a current period with either budget data for the current period or actual data for a prior period.
• C) It allows management to focus on data with significant deviations from expected results.
• D) It provides reports of production hours worked to production personnel.

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Definitions:

Direct Write-Off Method

An accounting approach where uncollectible debts are written off directly against income at the time they are deemed nonrecoverable.

Bad Debts Expense

Bad debts expense represents the amount of receivables a company estimates it will not collect due to customer defaults.

Trade Receivables

Amounts owed to a business by its customers for goods or services delivered on credit.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount, in exchange for immediate cash.