Which of the following is least likely to help a company minimize losses as credit standards are relaxed? A)Require potential customers to provide bank guarantees. B)Ask a potential customer for references regarding payment history. C)Increase the estimate of uncollectible accounts at the end of each period. D)Check a potential customer's credit rating.

Question

Quizplus · Accepted Answer

Increasing the estimate of uncollectible accounts is an accounting measure that reflects potential losses but does not actively minimize or prevent them.

Which of the Following Is least Likely to Help a Company