Which Accounting Concept Can Be Used by Some Companies to Justify

question 55

Multiple Choice

Which accounting concept can be used by some companies to justify the use of the direct write-off method?

• A)The entity concept
• B)The materiality concept
• C)The going concern concept
• D)The monetary principle

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Definitions:

Public Assistance Programs

Government programs that pay benefits to those who are unable to earn income (because of permanent disabilities or because they have very low income and dependent children); financed by general tax revenues and viewed as public charity (rather than earned rights).

Social Insurance Programs

Government-sponsored programs that provide financial assistance to individuals in events of unemployment, disability, or old age, funded through payroll taxes.

Incidence of Poverty

Refers to the proportion or rate at which poverty affects a population, typically measuring how widespread poverty is within a certain group or area.

African Americans

A demographic group in the United States characterized by ancestry from sub-Saharan Africa.