Which of These Statements Is Not True About Business Markets

question 140

Multiple Choice

Which of these statements is not true about business markets?

• A)the purchase may be made to resell the item
• B)the purchase is always made by more than one individual
• C)the purchase may be made to use in general daily operations
• D)the purchase may be made to use in production of another product
• E)they can also be referred to as organizational markets

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Definitions:

Doubtful Accounts

Accounts receivable considered unlikely to be collected, prompting businesses to create allowances for bad debts.

Bad Debts Adjustment

An accounting entry made to account for invoices that are not expected to be collected due to customer default.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Direct Write-off Method

A method of accounting for bad debts that directly writes off specific debts as they are deemed unrecoverable.