Which of the Following Statements Is Not Correct

question 28

Multiple Choice

Which of the following statements is not correct?

• A) The use of the direct charge-off method of recording losses from uncollectible accounts usually results in the balance in the Accounts Receivable account being overstated.
• B) The direct charge-off method of recording losses from uncollectible accounts is the method required by Federal income tax laws.
• C) The direct charge-off method of recording losses from uncollectible accounts is an application of the matching principle.
• D) When using the direct charge-off method,there is no Allowance for Doubtful Accounts account.

---

Definitions:

Swedish Krona

The official currency of Sweden, symbolized as SEK, used for all forms of transactions within the country.

Purchasing Power Parity

A financial model that evaluates the currencies of various nations by using a "basket of goods" method, indicating that exchange rates need to balance out so the cost of the same goods is the same in different countries.

Russian Rubles

The currency used in Russia, symbolized as RUB.

Euros

The official currency of 19 out of the 27 member states of the European Union, also used as a major global currency for international trade and investment.