The Direct Write-Off Method of Accounting for Bad Debts

question 206

Multiple Choice

The direct write-off method of accounting for bad debts

• A) uses an allowance account.
• B) uses a contra-asset account.
• C) does not require estimates of bad debt losses.
• D) is the preferred method under generally accepted accounting principles.

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Definitions:

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An assessment of how well an individual, group, or system performs against defined criteria or objectives.

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Pertaining to something that conforms to a standard or a pattern that is usual, typical, or expected.

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An individual who has received instruction and practice in a particular skill or type of behavior for the workplace.

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