Click to watch the Concept Clip Failure to Collect video and then answer the que

ID: 2554120 • Letter: C

Question

Click to watch the Concept Clip Failure to Collect video and then answer the questions below.

1. Which is usually the first course of action a business takes to collect a bill?

a) Turns the bill over to a collection agency.

b) Reports the non-payment to the tax agency.

c) Contacts the person to ask about why they haven't paid and adjust terms to maximize the potential for collection.

d) Writes off the bill as a part of doing business.

2. Which is usually the last course of action a business takes to collect a bill?

a) Turns the bill over to a collection agency.

b) Reports the non-payment to the tax agency.

c) Contacts the person to ask about why they haven't paid and adjust terms to maximize the potential for collection.

d) Writes off the bill as a part of doing business.

3. The estimate for uncollectible accounts is normally based on which of the following?

a) past experience

b) industry averages

c) forecasts of the future

d) all of the above

correct option is "C" -Contacts the person to ask about why they haven't paid and adjust terms to maximize the potential for collection

Generally the first step taken by business for collection is that they contact the customers and identify the reason for non payment

2)correct option is"A"

The last action by business that they factors or resell the receivables to an outside agency

3)correct option is "D"

The estimation for uncollectibility is based on past performance(past payment ) or industry average (on an average industry expected its collections)

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