Which of the Following Is False Regarding the Allowance for Doubtful

question 65

Multiple Choice

Which of the following is false regarding the Allowance for Doubtful Accounts?

• A)The Allowances for Doubtful Accounts is closed at the end of the fiscal year.
• B)Cash realizable value reduces receivables in the statement of financial position by the amount of estimated uncollectible receivables.
• C)Cash realizable value is also referred to as "amortized cost" by the International Accounting Standards Board.
• D)Cash realizable value is also referred to as "accounts receivable(net)".

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Definitions:

Grouping of Individuals

The organization or classification of people into groups based on shared characteristics, objectives, or interests.

Formalization

The extent to which an organization's procedures, policies, and rules are written and strictly followed.

Allowable Actions

Those actions or behaviors that are permitted within a given set of rules, regulations, or contexts.

Total Quality Management

An organizational approach focused on continuous improvement in all aspects of work, from decision-making to customer service, by involving every employee.