Which of the Following Statements About the Allowance for Doubtful

question 15

Multiple Choice

Which of the following statements about the Allowance for doubtful debts account is true?

• A) The Allowance for doubtful debts account represents cash available to meet losses incurred when customers are unable to pay their accounts.
• B) The Allowance for doubtful debts account functions to adjust the net value of accounts receivable down to the lower of cost and current estimated collectable amount.
• C) The Allowance for doubtful debts account represents the total of accounts written off as uncollectable for the current period.
• D) None of the answers provided.

---

Definitions:

HR Unit

A division within a company focused on employee recruitment, management, and company policies adherence.

Specialized Subunits

Distinct divisions or sections within an organization tasked with specific functions or responsibilities, often to increase efficiency or expertise.

Legal Regulations

Rules and guidelines enforced by government agencies to control behavior, ensure fairness, and protect both public and private interests.

McGregor's Theory X

A management theory suggesting that employees are inherently lazy and need to be closely supervised.