The Direct Write Off Method to Accounting for the Impairment

question 4

Multiple Choice

The direct write off method to accounting for the impairment of receivables

• A)Is never an acceptable method.
• B)Is an acceptable method when the effect of not applying the allowance method would be immaterial.
• C)Is specifically disallowed under private entity GAAP.
• D)Would usually result in the same net income as the allowance method.

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Definitions:

Circular

Shaped like or nearly resembling a circle; having the form or attributes of a circle.

Differentia

The characteristic or set of characteristics that distinguishes one entity or concept from another within the same group or category.

Genus

In biology, a rank used in the classification of organisms that groups together species sharing common characteristics; in logic, it refers to a general term that describes a broad category.

Differentia

This refers to the traits or attributes that allow us to distinguish between different species within the same genus.