Accountants argue that which of the following approaches to estimating Allowance for Bad Debts provides a realistic estimate of the net receivables?
a. taking a percentage of net sales
b. taking a percentage of revenue
c. aging the accounts receivable
d. analyzing the sales on account
c
You might also like to view...
Simmons Inc is an American firm that manufactures and distributes a line luxury furniture under the brand name Elegant Living
The firm measures the loyalty levels of its customers and classifies them into the different groups based on their loyalty index. Which of the following customers are most likely to be classified as spinners by Simmons Inc? A) Customers who have a loyalty score between 50 to 69. B) Customers who purchase an Elegant Living furniture one time because of an attractive discount. C) Customers who are first-time buyers. D) Customers who are likely to recommend Elegant Living furniture to potential buyers. E) Customers who buy a lot of Elegant Living products as well as products from other furniture brands.
Before teaming up with another company, the strategic alliance buyer should learn about the firm the salesperson represents
Indicate whether the statement is true or false
The UCC imposes a duty of good faith in the performance of all contracts
a. True b. False Indicate whether the statement is true or false
In Donahue v. Rodd Electrotype Co, Inc, the court's opinion stated:
a. by definition, a close corporation strongly resembles a partnership. b. minority shareholders have no right to rely on the loyalty and abilities of the majority. c. minority shareholders in a close corporation can cause dissolution of the corporation. d. when a close corporation purchases the shares of a controlling stockholder, there is necessarily a preferential distribution of the corporation's assets.