The Allowance for Doubtful Accounts Is Necessary Because

question 35

Multiple Choice

The Allowance for Doubtful Accounts is necessary because

• A)when recording uncollectible accounts expense, it is not possible to know which specific accounts will not pay.
• B)uncollectible accounts that are written off must be accumulated in a separate account.
• C)a liability results when a credit sale is made.
• D)management needs to accumulate all the credit losses over the years.

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Definitions:

Ideological Reasoning

The process of thinking that begins with abstractions or generalizations that express one’s core beliefs, concepts, values, or principles and proceeds to reason top down to specific applications. Ideological reasoning is deductive and axiomatic. The argument maker takes the ideological premises on faith.

Ethical Imperatives

Moral obligations or principles that compel certain actions or choices.

Behavioral Ideals

Standards or models of conduct that are considered desirable or appropriate within a particular context or society.