Under the Direct Write-Off Method of Accounting for Uncollectible Accounts

question 151

Multiple Choice

Under the direct write-off method of accounting for uncollectible accounts

• A) the allowance account is increased for the actual amount of bad debt at the time of write-off.
• B) a specific account receivable is decreased for the actual amount of bad debt at the time of write-off.
• C) balance sheet relationships are emphasized.
• D) bad debts expense is always recorded in the period in which the revenue was recorded.

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Definitions:

Organisational Leaders

Individuals in a position of authority within an organization who are responsible for strategizing, decision-making, and guiding members towards the achievement of collective goals.

Minority Workers

Individuals from racially, ethnically, or culturally distinct groups who are employed within a workforce predominantly composed of a different majority group.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, and the acknowledgment, appreciation, and promotion of this diversity.

Pluralism

The recognition and affirmation of diversity within a political body, which permits the peaceful coexistence of different interests, convictions, and lifestyles.