When the Credit Manager Decides a Customers' Account Is Considered

question 39

Multiple Choice

When the credit manager decides a customers' account is considered to be uncollectible,the decision should be reviewed by the controller to ________.

• A)ensure the bad debts account is within budget
• B)ensure the credit manager has not written off the account as a favour to a friend
• C)begin a lawsuit to collect the money
• D)inform the police

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Definitions:

Surplus

When the quantity supplied of a commodity surpasses the quantity demanded, often resulting in a decrease in price to balance the disparity.

Monopolist

An individual or entity that has exclusive control over the production and selling of a particular good or service.

Deadweight Loss

The decrease in economic effectiveness due to the inability to achieve or the unachievable status of market equilibrium for a specific good or service.

Marginal Cost

An elevation in the cumulative expense resulting from manufacturing one more unit of a product or service.