The Allowance for Doubtful Accounts, Which Appears as a Deduction

question 16

Multiple Choice

The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a balance sheet and which is based on an estimate of bad debts, is an application of the

• A)consistency characteristic.
• B)matching principle.
• C)materiality constraint.
• D)revenue recognition principle.

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Definitions:

False Memory

A psychological phenomenon where an individual recalls something that did not happen or recalls it differently from the way it actually happened.

Source Amnesia

Source amnesia is the inability to remember where, when, or how previously learned information was acquired, while retaining the factual knowledge.

False Recollection

The phenomenon of remembering something inaccurately, involving the creation of fabricated or distorted recollections, often with high confidence in their veracity.

Proactive Interference

A type of memory interference where old information makes it harder to learn and remember new information.