Once an Account Receivable Is Written Off, Can a Business

question 72

Multiple Choice

Once an Account Receivable is written off, can a business ever collect that money?

• A)No, GAAP does not allow a company to collect any amounts from a customer who has had an account written off.
• B)Only when using the direct write-off method can a company collect from a customer who has had an account written off.
• C)Only when using the allowance method can a company collect from a customer who has had an account written off.
• D)Both the allowance and direct write-off methods permit a company to collect from a customer who has had an account written off.

---

Definitions:

Class Action

A legal proceeding in which one or several plaintiffs bring a lawsuit on behalf of a larger group of people with similar claims.

Group Action

A legal proceeding where a group of people collectively bring a claim to court, also known as a class action lawsuit.

Coordinated Effort

A collaborative action where individuals or groups work together towards a common goal or objective.

U.S. Court of Federal Claims

A court that has jurisdiction over most claims for money damages against the U.S. government, including claims for breaches of contracts, takings claims for real property, and federal tax refunds.