Which Statement Is Correct About Recording an Allowance for Doubtful

question 85

Multiple Choice

Which statement is correct about recording an allowance for doubtful accounts?

• A)Accounts receivable are not adjusted for known uncollectable amounts.
• B)Net accounts receivable is recalculated when there are changes recorded in the Allowance for Doubtful Accounts contra account.
• C)Comparability is the reason an allowance for doubtful accounts is needed.
• D)An allowance for doubtful accounts does not require estimates or judgments.

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Definitions:

Motivators

Factors that stimulate enthusiasm and energy in individuals to pursue a particular course of action or continue in their efforts to achieve a goal.

Job Characteristics Model

A framework that suggests the motivation, satisfaction, and performance of employees are influenced by specific job characteristics.

Task Significance

The degree to which a job has a substantial impact on the lives of other people or is perceived as important and valuable.

Enriched Job

An employment design aimed at enhancing job satisfaction and performance by incorporating meaningful tasks, giving workers more autonomy, and offering opportunities for personal growth.