A Computer Dating Service Uses the Results of Its Compatibility

question 138

Multiple Choice

A computer dating service uses the results of its compatibility survey for arranging dates. The survey consists of 30 questions, each having five possible answers. How many different responses are possible if every question is answered? ​

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Definitions:

Bad Debts Expense

An expense reported on the income statement, representing accounts receivable that a company does not expect to collect.

Income Statement Approach

A method for creating an adjusting entry for bad debts by estimating uncollectible accounts based on income statement figures.

Aging

The process of categorizing accounts receivable based on how long an invoice has been outstanding to determine credit risk.

Direct Write-Off Method

An accounting method used to recognize bad debts at the point when specific accounts are deemed uncollectible, directly impacting the income statement.