Which of the Following Statements Is True Regarding the Two

question 73

Multiple Choice

Which of the following statements is true regarding the two allowance procedures used to estimate bad debts?

• A)The percentage of net credit sales method takes into account the existing balance in the Allowance for Doubtful Accounts account.
• B)The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account.
• C)The aging of accounts receivable method takes into account the existing balance in the Allowance for Doubtful Accounts account.
• D)The direct write-off method does a better job of matching revenues and expenses.

---

Definitions:

External Criteria

Involves factors or standards imposed from outside an organization or system to assess its performance or quality.

Internal

Internal pertains to something located within or happening inside a specified entity, such as an organization or the human body.

Sociological

Pertaining to sociology, which is the study of society, patterns of social relationships, social interaction, and culture.

Generalizability

The extent to which research findings and conclusions can be applied to larger populations or different contexts outside the study's parameters.