A Firm Has Accounts Receivable of $100,000 and Allowance for Doubtful

question 40

Multiple Choice

A firm has accounts receivable of $100,000 and allowance for doubtful accounts of $15,000.How will this be reported on the financial statements?

• A)$85,000 asset
• B)$85,000 revenue
• C)$100,000 asset and $15,000 liability
• D)revenue of $100,000 and expense of $15,000

Learn the differences among FIFO, LIFO, and weighted average inventory valuation methods.

Recognize the influence of inventory valuation methods on financial statements.

Calculate inventory turnover and understand its implications.

Determine days’ sales in inventory and evaluate company performance.

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Definitions:

Publicity Test

The publicity test is an ethical guideline suggesting that an individual or company should only engage in actions that they would not be embarrassed or concerned about if these actions became public knowledge.

Ethical Decision-Making Metric

A set of guidelines or criteria used to ensure that decisions and actions within an organization are conducted with integrity, fairness, and responsibility.

Ethical-Decision Making Process

A structured approach to determining the best ethical course of action, considering various ethical principles and the impact of decisions on stakeholders.

Ethical Decision-Making Process

Involves a step-by-step approach to making choices that reflect one’s ethical standards and principles, considering the impact of actions on stakeholders.