Which One of the Approaches for the Allowance Procedure Emphasizes

question 117

Multiple Choice

Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?

• A)The aging of accounts receivable method
• B)The percentage of net credit sales method
• C)The percentage of accounts written off method
• D)The direct write-off method

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Definitions:

Named Beneficiary

An individual, group, or entity explicitly designated to receive benefits from a policy or account.

Partnership

A lawful business structure operated by two or more people who divide management duties and share the profits.

Liability Insurance

A type of insurance that provides protection against claims resulting from injuries and damage to people or property.

Losses

Financial or material reductions resulting from business activities or other endeavors.