If a Company Is Experiencing More Write Offs Than Were

question 53

Multiple Choice

If a company is experiencing more write offs than were estimated,

• A) the bad debt should be reduced next period.
• B) the direct method should be implemented.
• C) the percentage should be increased next accounting period.
• D) an adjustment should be made retrospectively.

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Definitions:

Incentive Approaches

Theories of motivation in which behavior is explained as a response to the external stimulus and its rewarding properties.

Internal Stimuli

Signals originating from within the body that influence feelings, thoughts, or behaviors, such as hunger, pain, or internal emotional states.

Innate Patterns

Fixed sequences of behavior or instincts present in animals from birth, not learned from experience, and manifest under certain conditions to ensure survival.

Biologically Determined

Characteristics or behaviors that are influenced by genetic makeup or inherent in the biology of an organism.