The proportion of the total receivables volume a company never collects is the ____.
A) bad-debt loss ratio
B) mismanaged accounts payable
C) uncollectable bills
D) recorded debts

Question

Quizplus · Accepted Answer

The bad-debt loss ratio represents the proportion (percentage) of the total receivables volume that a company never collects. This is a measure of a company's credit risk and its ability to manage its accounts receivable. The higher the bad-debt loss ratio, the lower the company's ability to collect payments from its customers and the higher its credit risk.

The Proportion of the Total Receivables Volume a Company Never