If a Company Uses the Direct Write-Off Method of Accounting

question 168

Multiple Choice

If a company uses the direct write-off method of accounting for bad debts,

• A) It is applying the matching principle.
• B) It will record bad debt expense only when an account is determined to be uncollectible.
• C) It will reduce the accounts receivable account at the end of the accounting period for estimated uncollectible accounts.
• D) It will report accounts receivable in the balance sheet at their net realizable value.

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Definitions:

Unethical Behavior

Actions that are considered morally wrong within the professional or corporate realm.

Involuntary Separation

Termination of employment initiated by the employer for reasons other than the employee's personal choice, such as layoffs or downsizing.

Voluntary Turnover

The act of an employee leaving the organization by choice rather than being fired or laid off.

360-Degree Performance Review

A feedback process where employees receive confidential, anonymous feedback from those who work around them.