Match Each Description to the Appropriate Term (A-D)

question 41

Multiple Choice

Match each description to the appropriate term (a-d) . Each term may be used more than once.
-This method is based on the theory that older accounts are less likely to be collected.

• A)Direct write-off method
• B)Aging of receivables method
• C)Percent of sales method
• D)Allowance method

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Definitions:

Revenues And Expenses

Terms referring to the income generated from business activities and the costs incurred to earn that income, respectively.

Specific Day

A precise date identified for a particular event or activity.

Gain Or Loss

A financial result that indicates the difference between the sale price of an asset and its original purchase price.

Functional Currency

The primary currency of the main economic environment in which an entity operates.