Some Distribution Companies Even Find That the Best Way to Be

question 74

Multiple Choice

Some distribution companies even find that the best way to be successful is to create a distribution ________________.

• A) alliances
• B) mergers
• C) acquisitions
• D) consortia
• E) joint ventures

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Definitions:

Aging Receivables

A method of categorizing accounts receivable based on how long they have been outstanding to assess and manage credit risk.

Bad Debt Expense

Represents the portion of receivables that a company estimates it will not be able to collect.

Allowance for Doubtful Accounts

A contra account that estimates the portion of accounts receivable which may not be collectible.

Uncollectible Accounts

Refers to debts owed to a company that it does not expect to be paid due to various reasons such as bankruptcy of the debtor.