Which One of the Approaches for the Allowance Procedure Emphasizes

question 30

Multiple Choice

Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?

• A) The percentage-of-receivables approach
• B) The percentage-of-sales approach
• C) The percentage-of-accounts written off method
• D) The direct write-off method

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Definitions:

Purchase

The act of acquiring goods or services in exchange for money.

Register

The act of recording or enlisting information, events, or transactions, often for official keeping or as a preliminary step to gain access to a service or system.

Accept Terms

The act of agreeing to conditions set forth by software, services, or agreements, often necessary to proceed with use or participation.

Access Control

A security technique that regulates who or what can view or use resources in a computing environment.