Under the Income Statement Method of Estimating Debts Likely to Be

question 48

Multiple Choice

Under the income statement method of estimating debts likely to be bad:

• A) a percentage, based on past experience, is applied to profit.
• B) accounts receivable are 'aged' to establish likely bad debts.
• C) a percentage, based on past experience, is applied to credit sales.
• D) an estimate of bad debts is made by the accountant.

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Definitions:

Resonance Forms

Various Lewis diagrams depicting the same compound to show the electron delocalization throughout the molecule.

Delocalization Of Charge

The spreading out of a charge over two or more atoms, typically observed with electrons in molecules that exhibit resonance.

Major Contributor

A term often used in chemistry and other sciences to refer to the most significant element or factor in a given process or structure.

Blocking

A technique in experimental design used to remove the effects of confounding variables by grouping subjects that are similar in some way.