Which of the Following Is Not a Method of Estimating

question 37

Multiple Choice

Which of the following is not a method of estimating the amount of bad debt expense at the end of the accounting period?

• A)percent-of-receivables method
• B)percent-of-sales method
• C)direct write-off method
• D)aging-of-receivables method

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Activities

Business activities directly related to the production and delivery of goods and services, reflecting the company's core operations.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Publicly Traded

A company is described as publicly traded when its shares are bought and sold on public stock exchanges.