Management Uses the Percentage-Of-Sales Approach Method to Calculate the Allowance

question 2

Multiple Choice

Management uses the percentage-of-sales approach method to calculate the allowance for doubtful debts.Management calculated the allowance for doubtful debts on the basis of 2 per cent of sales.However,by year-end it was aware that the rate should have really been 3 per cent of sales.Management does not adjust the allowance for doubtful debts at year-end.As a result:

• A) assets are overstated,and net profit is overstated.
• B) assets are overstated,and net profit is understated.
• C) assets are understated,and net profit is overstated.
• D) assets are understated,and net profit is understated.

Describe the chemical reactions and enzymes involved in carbon dioxide transport and conversion in the blood.

Explain the factors affecting hemoglobin-oxygen binding affinity and the physiological significance of the Bohr effect.

Understand the mechanisms of gas exchange in various organisms and the importance of countercurrent exchange systems.

Recognize the control and regulation of breathing through neural mechanisms and the role of specific brain regions.

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Definitions:

Economic Decisions

Choices made by individuals, businesses, or governments regarding the allocation of resources and the distribution of goods and services.

Total Burden

The full impact or total effect of something, often used in economics to refer to the combination of direct and indirect costs associated with a policy or tax.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually do pay.

Economic Decision

A choice made by individuals or organizations regarding the allocation of resources and the distribution of goods and services, often driven by cost-benefit analyses.