Refer to Scenario 7

question 2

Multiple Choice

Refer to Scenario 7.2 below to answer the question(s) that follow.
SCENARIO 7.2: You are the owner and only employee of a company that sets odds for sporting events. Last year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a return of $20,000 a year.
-Refer to Scenario 7.2. During the year your economic costs were

• A) $70,000.
• B) $60,000.
• C) $50,000.
• D) $20,000.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that estimates the portion of accounts receivable which may never be collected.

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically involving accounts receivable teams or collection agencies.

Selling Goods on Account

The process of selling merchandise to a buyer where payment is to be made at a future date as agreed.

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period.