One of the Measures That Can Be Undertaken to Reduce

question 2

Multiple Choice

One of the measures that can be undertaken to reduce bad debts before they occur is:

• A) a credit check.
• B) a reminder notice.
• C) use of a debt collector.
• D) issue of a monthly statement to the debtor.

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Definitions:

Budgeted Sales

It represents the expected amount of sales as planned for a future period, influenced by factors like past sales, market trends, and marketing strategies.

Master Budget

A comprehensive financial planning document that includes all of a company’s budgets and financial plans, consolidating them into an overall budget.

Raw Materials

Raw materials are the basic, unprocessed inputs used in the manufacture of products.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.