A Restaurant Is Experiencing Declining Sales

question 92

Multiple Choice

A restaurant is experiencing declining sales. It determines that the reason is that it has a formal dress code, such as a coat and tie policy for customers. Because they determine that the restaurant market in their domain prefers a more casual dress code, they eliminate the policy. This is an example of ________.

• A) natural selection
• B) isomorphism
• C) growth through direction
• D) faulty action

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Definitions:

Account Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Total Current Assets

The sum of all assets expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Written off Accounts

Accounts deemed uncollectible and therefore removed from the accounts receivable balance in the financial statements.