Which of the Following Statements Is Incorrect

question 95

Multiple Choice

Which of the following statements is incorrect?

• A) Trading at the New York Stock Exchange and the American Stock Exchange are done by open outcry.
• B) Dealers create market liquidity in the Nasdaq's electronic market.
• C) The Dow Jones Industrial Average includes 35 of the largest companies in the United States.
• D) The Nasdaq contains many very large technology firms.

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Definitions:

Net Credit Sales

Sales made on credit minus any sales returns or allowances, reflecting the actual credit sales revenue.

Uncollectible Accounts

Debts owed to a company that are considered to be uncollectable and are therefore written off as a bad debt expense.

Estimated Uncollectible

An accounting term referring to the portion of accounts receivable that a company does not expect to collect.

Allowance Method

is an accounting technique that estimates and reports the likely amount of uncollectible accounts receivable as an allowance for doubtful accounts.