Firms Extending Credit to Customers Should

question 35

Multiple Choice

Firms extending credit to customers should

• A)strive for zero uncollectible accounts to eliminate the need for establishing a bad debt expense and maintaining an allowance for uncollectible accounts.
• B)grant credit indiscriminately otherwise the firm may be charged with discrimination in the granting of credit and could be found to be in violation of Federal laws.
• C)grant credit to a given group of customers whenever the amount collected from the credit sales to that group exceeds the cost of goods sold and the other costs of serving that group.
• D)should ignore collection efforts aimed at those customers who have not paid their bills because the cost of staffing and maintaining a collection department are never cost effective.
• E)none of the above.

Understand the effectiveness and principles of couples therapy.

Recognize the importance of multiculturalism and diversity in psychotherapy.

Identify strategies to avoid gender stereotypes in therapy.

Assess the popularity and effectiveness of traditional analysis in modern psychotherapy.

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Definitions:

Departmental Income Statement

A financial statement that shows the income, expenses, and net income of different departments within a company.

Contribution To Overhead

The portion of revenue that exceeds direct costs and contributes to covering a company's fixed expenses.

Service Departments

Divisions within a company that support other departments but do not directly contribute to revenue generation, such as maintenance and HR.