The Finance Department of Lewis & Sons Only Accounts for 10

question 32

Multiple Choice

The finance department of Lewis & Sons only accounts for 10% of the employees,but wields the decision-making power and controls resources and information.As a result,the finance department of Lewis & Sons is considered to be a ________.

• A)determinant group
• B)majority group
• C)secondary group
• D)minority group
• E)model minority

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Definitions:

Allowance Method

A technique in accounting used to adjust accounts receivable for the amount estimated to be uncollectible.

Bad Debts

Accounts receivable that are considered uncollectible, representing losses to the company.

Accounts Receivable Turnover

Accounts Receivable Turnover is a financial metric that measures how efficiently a company collects cash from its credit sales, calculated by dividing total credit sales by the average accounts receivable during a period.

Credit Policies

Guidelines established by businesses to determine to whom they will extend credit and on what terms.