Which of the Following Is Used to Simplify and Clarify

question 91

Multiple Choice

Which of the following is used to simplify and clarify data?

• A) tables
• B) graphs
• C) charts
• D) all of these choices

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Definitions:

Allowance Method

An accounting technique used to estimate and account for potential uncollectable debts or credit sales.

Uncollectible Receivables

Debts owed to a company that are considered unlikely to be paid by the debtor, often written off as bad debts.

Bad Debts Expense

Bad debts expense is the cost to a business of accounts receivable that are not collected because customers are unable to pay.

Allowance for Doubtful Accounts

An accounting provision made for accounts receivable that may not be collectible.