The Allowance Method of Accounting for Uncollectible Accounts Is Required

question 57

Multiple Choice

The allowance method of accounting for uncollectible accounts is required by GAAP if

• A)the company makes any credit sales.
• B)bad debts are significant in amount.
• C)the company is a retailer.
• D)the company charges interest on accounts receivable.

---

Definitions:

Affirmative Action Programs

Policies and practices within an organization aiming to increase the chances of historically underrepresented groups in employment, education, and business.

Prejudice

A preconceived opinion that is not based on reason or actual experience, often resulting in unjust treatment of different categories of people.

Membership

The state of being a member or part of a group, organization, or society.

Power Distance

A measure of how much the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.