In Figure 33

question 91

Multiple Choice

In Figure 33.1, suppose that the Gini coefficient for Omega is 0.55.The Gini coefficient for Alpha must be

• A)Less than 0.55.
• B)Equal to 0.55.
• C)Greater than 0.55.
• D)0.45.

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Definitions:

Allowance Method

An accounting technique used to estimate uncollectable accounts receivable within a company's financial statements.

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from credit sales.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables balance to reflect the amount that is expected to be uncollectible.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is an accounting technique to estimate the amount of receivables that are expected not to be collected, acting as a contra account to accounts receivable.