The Extinction of a Predatory Bird Leads to an Increase

question 22

Short Answer

The extinction of a predatory bird leads to an increase in the population size of a small mammal, which in turn leads to a decrease in the population size of the plants on which the mammal feeds. This is an example of a _______, which is caused by a series of _______ effects.

---

Definitions:

Bad Debt Expense

The portion of accounts receivable that is estimated to be uncollectible and is recognized as an expense in the financial statements.

Credit Sales

Transactions where goods are sold and payment is deferred, typically allowing the customer to pay at a later date without interest.

Allowance for Doubtful Accounts

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

Adjusting Entry

An adjustment recorded in the bookkeeping records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.