Ratios Used to Evaluate the Allowance for Uncollectibles Are

question 106

Multiple Choice

Ratios used to evaluate the allowance for uncollectibles are

• A)Bad Debt Expense to Sales Revenue and the ratio of the Accounts Receivable, Gross to Allowance for Uncollectibles to Accounts.
• B)Sales Revenue to Bad Debt Expense and the ratio of the Accounts Receivable, Gross to Allowance for Uncollectibles to Accounts.
• C)Sales Revenue to Bad Debt Expense and the ratio of the Allowance for Uncollectibles to Accounts Receivable, Gross.
• D)Bad Debt Expense to Sales Revenue and the ratio of the Allowance for Uncollectibles to Accounts Receivable, Gross.
• E)none of the above.

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Definitions:

Seasonality

Periodic fluctuations in economic or financial activity that recur with similar intensity during the same season of each year.

U.S. GDP

The total market value of all final goods and services produced within the United States in a given period, serving as a broad measure of overall economic activity.

Circular Flow Diagram

A visual model of the economy that shows how money flows through markets among households and firms, illustrating economic interactions.

Payments

Transactions or transfers of money or equivalents as a form of settling a debt or fulfilling an obligation.