According to the American Collectors Association, If a Business Is

question 43

Multiple Choice

According to the American Collectors Association, if a business is writing off more than ________ percent of its sales as bad debts, it needs to tighten its credit and collection policies.

• A)3
• B)5
• C)10
• D)25

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand to pay for minor, incidental expenses of a business, recorded as a current asset on the balance sheet.

Cash Short

A situation where the actual cash on hand is less than the recorded amount in the accounting records, often resulting in a discrepancy during reconciliation.

Petty Cash Receipts

Documentation of small amounts of cash expenditures from a petty cash fund, used for minor business expenses.

Internal Control Problems

Weaknesses or failures in a company’s system of policies and procedures that govern its operations and financial reporting.