The Odds Against Winning $1

question 73

Multiple Choice

The odds against winning $1.00 in the lottery are 19 to 1. What is the probability of winning $1.00 in the lottery?

• A) 0.05
• B) 0.0526
• C) 0.90
• D) 0.95

---

Definitions:

Bad Debt Expense

An accounting expense representing accounts receivable that a company does not expect to collect.

Allowance Method

An accounting technique used to estimate the amount of uncollectible accounts receivable that will not be paid by debtors, allowing companies to record these anticipated losses as an expense.

Bad Debt Expense

An expense reported on the income statement, representing the estimate of receivables that a company does not expect to collect.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.