The Allowance for Doubtful Accounts, Which Appears as a Deduction

question 12

Multiple Choice

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

• A) consistency characteristic.
• B) expense recognition principle.
• C) materiality quality.
• D) revenue recognition principle.

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Definitions:

Reader

A person who reads or interprets written material.

Alternative

A different or substitute option, course of action, or solution that is available or may be considered.

Readers

Individuals who read or interpret written material, such as books, articles, or digital content.

Decide

To make a choice or conclusion from among several options or pieces of information.