Under the Aging-Of-Accounts-Receivable Method

question 118

Multiple Choice

Under the aging-of-accounts-receivable method:

• A) the balance in accounts receivable prior to adjustment must be considered
• B) the balance in Allowance for Uncollectible Accounts prior to adjustment must be considered
• C) the balance in Allowance for Uncollectible Accounts prior to adjustment is ignored
• D) the balance in Bad Debt Expense prior to adjustment must be considered

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Definitions:

Gross Investment

The total amount invested in the economy, including spending on new physical assets and replacement of depreciated assets.

Percentage Change

Percentage Change is a mathematical calculation that shows how much a quantity has increased or decreased as a percentage of its previous amount.

Incomes

Periodic earnings obtained from professional activities or financial investments.

Services

Economic activities that produce intangible goods, such as entertainment, healthcare, and education.