The Allowance for Doubtful Accounts, Which Appears as a Deduction

question 60

Multiple Choice

The Allowance for Doubtful Accounts, which appears as a deduction from Accounts Receivable on a statement of financial position and which is based on an estimate of bad debts, is an application of the

• A)consistency characteristic.
• B)expense recognition principle.
• C)materiality constraint.
• D)revenue recognition principle.

---

Definitions:

Forming

The initial stage in team development where group members come together and start to understand their roles and the task at hand.

Storming

A stage in team development marked by conflict and competition as team members work to establish norms and structures.

Team Cohesiveness

Reflects the bond that encourages members of a group to work together effectively, characterized by unity, trust, and a commitment to collective success.

Increased Interaction

a rise in the level of communication or engagement between entities or individuals.