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One of the Shortcomings in Evaluating the Allowance for Uncollectible

question 20

Multiple Choice

One of the shortcomings in evaluating the allowance for uncollectible accounts by reviewing individual noncurrent balances on the aged trial balance is: I. it is difficult to compare the results of the current year with those of the previous year.
II) current accounts are ignored in establishing the adequacy of the allowance.


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