The Net Method of Recording Accounts Receivable Is Rarely Used

question 196

Multiple Choice

The net method of recording accounts receivable is rarely used because it

• A)is less theoretically correct than the gross method.
• B)requires an "Allowance for Sales Discounts" to be reported on the statement of financial
• Position.
• C)has a different effect on the statement of financial position and income statement.
• D)requires more bookkeeping for the additional adjusting entries after the discount period
• Has passed.

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Definitions:

Electroencephalograph (EEG)

A device used to record the electrical activity of the brain, typically used for diagnostic purposes.

Electromyograph (EMG)

A diagnostic tool used to measure the electrical activity produced by skeletal muscles.

Electrocardiograph (EKG)

A medical test that measures the electrical activity of the heart to identify various heart conditions.

Electro-Oculograph (EOG)

A method of measuring eye movements by recording the electrical activity generated by the movement of the eye.