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.

---

Definitions:

Shared Experiences

Experiences that are collectively lived or encountered by a group, often creating bonds, understanding, or social cohesion among its members.

Skydiving

The sport or activity of jumping from an aircraft and typically free-falling for a period before deploying a parachute to slow the descent to the ground.

Nostalgia Scale

A tool used in psychological and marketing research to measure individuals' tendencies toward or affection for nostalgia.

Quality of Life

An individual's overall assessment of their wellbeing, including not only wealth and employment but also the environment, physical and mental health, education, recreation and leisure time, and social belonging.