Using an Allowance Method of Accounting to Recognize Uncollectible Accounts

question 82

Multiple Choice

Using an allowance method of accounting to recognize uncollectible accounts receivable is an application of which accounting convention?

• A)revenue recognition
• B)historical cost
• C)matching principle
• D)period of time

---

Definitions:

Joint State-Federal Program

Programs operated and funded by both state and federal governments to serve various public needs, like Medicaid.

Medical Care

A service provided to individuals to maintain or improve their health, often involving the diagnosis, treatment, and prevention of disease.

Entitlement Program

A government program that guarantees certain benefits to a particular group or segment of the population who meet specific eligibility criteria.

Social Security

A government program designed to provide financial support to individuals during retirement, disability, or hardship.