The Account Allowance for Doubtful Accounts Is Necessary Because

question 70

Multiple Choice

The account Allowance for Doubtful Accounts is necessary because

• A)when recording bad debts expense, it is not possible to know which specific accounts will not be paid.
• B)uncollectible accounts that are written off must be accumulated in a separate account.
• C)a liability results when a credit sale is made.
• D)management needs to accumulate all the credit losses over the years.

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Definitions:

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The process of making sense of or assigning meaning to data, actions, words, or events, often used in the analysis phase of research or literary study.

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A professional specializing in diagnosing and treating mental illness, emotional disturbances, and abnormal behavior.

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A therapeutic technique used to treat mental health problems through verbal and psychological methods.

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