Independent Professional Services That Improve the Context and Quality of Information

question 39

Multiple Choice

Independent professional services that improve the context and quality of information for decision-making is known as:

• A) financial services.
• B) auditing services.
• C) assurance services.
• D) internal services.

---

Definitions:

Allowance Method

An accounting technique that estimates and accounts for bad debts or credit losses in financial statements.

Uncollectible Receivables

Accounts receivable that a company does not expect to collect and writes off as a loss.

Credit Sales

Sales transactions where the payment is deferred to a future date, typically resulting in the creation of accounts receivable.

Allowance for Doubtful Accounts

An allowance for doubtful accounts is a contra-account that reduces the total receivables on the balance sheet by the amount that is estimated to be uncollectible.