Explain the Difference Between the Baldrige Performance Excellence Program and ISO

question 90

Essay

Explain the difference between the Baldrige Performance Excellence Program and ISO 9001:2008.

Grasp the initial recording of trade receivables and the rationale behind selecting accounting methods for them.

Understand the estimation of bad debt expense based on historical relationships and its impact on financial statements.

Recognize the advantages and appropriate application of the net price method for recording cash discounts on credit sales.

Analyze the treatment of uncollectible accounts under different accounting methods and the conceptual rationale behind these methods.

---

Definitions:

Effective Rate

The total calculated interest on a loan or investment annually, including compounding, differing from the nominal interest rate.

Effective Annualized Rate

The interest rate that is annualized using compounding over a given period, providing a true reflection of the financial cost.

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding over time.

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period of time.