The Direct Write-Off Method of Accounting for Uncollectible Accounts

question 4

Multiple Choice

The direct write-off method of accounting for uncollectible accounts

• A)emphasizes the matching of expenses with revenues.
• B)emphasizes balance sheet relationships.
• C)emphasizes cash realizable value.
• D)is not generally accepted as a basis for estimating bad debts.

---

Definitions:

Accounting Process

The systematic series of steps undertaken to record, classify, and summarize financial transactions and present financial statements.

Tax Returns

Official documents filed with a government body, detailing income earned and taxes owed for the year.

Public Accountants

Professionals who provide accounting services to the public, including auditing, taxation, and consulting.

Private Accountants

Accountants who work exclusively for one company, handling its financial records and statements internally.