Which of the Following Is TRUE

question 54

Multiple Choice

Which of the following is TRUE?

• A)The allowance method requires a business to estimate bad debt expense.
• B)The allowance method requires a business to record only actual bad debt expense.
• C)The allowance method allows a business to choose between recording actual or estimated bad debt expense.
• D)The allowance method does not relate to bad debts expense. It is a method used to prepare a bank reconciliation.

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Definitions:

Drive-Reduction Theory

A theory of motivation that posits that human beings are motivated to reduce internal tensions caused by unmet biological needs, such as hunger or thirst.

Sandwich Shop

A food establishment that specializes in preparing and selling sandwiches and often other related food items.

Environmental Stimuli

External factors or conditions that affect the behavior and processes of an organism.

Drives

Innate biological needs that motivate organisms to perform actions essential to their survival and reproduction.