Making every effort to reflect possible future losses


Indicate whether each of the following actions is related to

(a) Managing cash needs,
(b) Setting credit policies,
(c) Financing receivables, or
(d) Ethically reporting receivables:

1. Selling accounts receivables to a factor
2. Borrowing funds for short-term needs during slow periods
3. Conducting thorough checks of new customers' ability to pay
4. Making every effort to reflect possible future losses accurately

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Cost Accounting: Making every effort to reflect possible future losses
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