The Direct Write Off Method of Accounting for the Impairment

question 33

Multiple Choice

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

• A) is never acceptable.
• B) is an acceptable method when the effect of not applying the allowance method would be highly immaterial.
• C) is specifically disallowed under IFRS.
• D) usually results in the same net income as the allowance method.

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Definitions:

Staphylococcal Prostatitis

An inflammation of the prostate gland caused by infection with staphylococcal bacteria, leading to urinary tract symptoms and discomfort.

Acute

Acute refers to conditions or diseases that have a sudden onset and severe symptoms but are usually of short duration.

Ornithosis

An infectious disease also known as psittacosis, contracted from birds, particularly parrots, pigeons, and poultry.

Psittacosis

An infectious disease primarily transmitted to humans from birds, particularly parrots, caused by the bacterium Chlamydia psittaci.