Which of the Following Is Most Likely to Be a Fixed

question 192

Multiple Choice

Which of the following is most likely to be a fixed resource for the City Slicker's Dude Ranch?

• A)the lodge where the guests stay
• B)food for the guests
• C)stable hands to take care of the horses
• D)hay for the horses
• E)water for the horses

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Definitions:

Allowance Method

A method used in accounting to estimate and account for bad debts, representing the amount of accounts receivable that may not be collected.

Allowance for Doubtful Accounts

A contra asset account that represents the estimated portion of accounts receivable that may not be collectible.

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable and adjust the amount of accounts receivable reported on the balance sheet.

Accounts Receivable

Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.