State the Problem with This Simple Frequency Distribution

question 59

Multiple Choice

State the problem with this simple frequency distribution.

• A) The interval width is too small.
• B) The interval width is unequal.
• C) The class intervals overlap.
• D) The number of intervals is too small.

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Definitions:

Allowance Method

Bases bad debt expense on an estimate of uncollectible accounts.

Bad Debt Expense

An expense reported on the income statement, representing the value of accounts receivable deemed non-collectible.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Net Income

The residual income of a business following the subtraction of all taxes and costs from the total revenue.