Proper Accounting Requires That an Account Receivable Must Be Written

question 66

Multiple Choice

Proper accounting requires that an account receivable must be written off by the client when:

• A) the customer files for bankruptcy.
• B) the client company concludes that an amount is no longer collectible.
• C) the account is at least six months old.
• D) a collection agency cannot inspire the customer to pay the debt.

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Definitions:

DNR Order

A legal document, Do Not Resuscitate, instructing healthcare providers not to perform CPR in the event of cardiac arrest.

Deep Unconsciousness

A state of minimal to no consciousness in which an individual is not responsive to their environment and lacks awareness of themselves and others.

Vegetative State

A condition in which a person is awake but shows no signs of awareness due to severe brain injury.

Brain Waves

Brain waves are patterns of electrical activity occurring in the brain, associated with different states of consciousness, thought, and mental health.