_____ Refers to the Practice of Accepting Goods for Resale,without

question 61

Multiple Choice

_____ refers to the practice of accepting goods for resale,without taking ownership of them and without being responsible to pay prior to their being sold.

• A) Barter
• B) Consignment
• C) Noncash incentive
• D) Benchmarking

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Definitions:

Aging of Receivables

The process of categorizing accounts receivable by their due dates to estimate bad debt expenses.

Allowance Account

An account used to offset the total amount of accounts receivable due to the likelihood that some accounts will not be collected.

Bad Debts Expense

An expense account that represents the cost of credit sales that are considered to be uncollectible, reducing net income on the income statement.