Lawrence Wright Is Slow in Math

question 149

Multiple Choice

Lawrence Wright is slow in math.He has before him the equation of (ending value minus beginning value) and income return totalled,then divided by beginning value.This is used to find the

• A)rate of inflation.
• B)capital gain.
• C)capital loss
• D)rate of return.
• E)serialized rate of return.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable not expected to be collected.

Bad Debts Expense

An expense account that represents accounts receivable that a company does not expect to collect and writes off as a loss.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collected.

Percentage-of-Receivables Basis

A method used in accounting to estimate the amount of accounts receivable that will not be collected by applying a percentage based on historical data.