Which of the Following Is One of the Methods Used

question 136

Multiple Choice

Which of the following is one of the methods used to account for uncollectible accounts?

• A)Percentage of sales (emphasis on income statement).
• B)Percentage of receivables (emphasis on statement of financial position).
• C)Direct write-off.
• D)All of the choices are methods used to account fro uncollectible accounts.

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Definitions:

Implicit Costs

refer to the opportunity costs that occur when a company uses internal resources that could have been used for another purpose but do not directly affect cash flow.

Entrepreneurial Talent

The specific skills, creativity, and innovation that individuals bring to starting and managing new ventures or businesses.

Forgone Interest

The potential interest earnings lost by choosing to invest capital in one option over an alternative that offers a higher return.

Short-Run Adjustment

The process by which businesses alter their production levels or inputs in response to short-term changes in market conditions.