What Is NOT a Difference Between the Allowance Method and the Direct-Write

question 8

Multiple Choice

What is NOT a difference between the Allowance method and the Direct-write Off method?

• A)The Direct Write-Off method is used if bad debts have a material impact on the financial statements.
• B)Direct Write-Off is used for tax purposes.
• C)The Allowance method estimates bad debts and establishes a reserve for uncollectible accounts.The Direct Write-off method records bad debt expense at the specific time a customer's account becomes uncollectible.
• D)In both methods,an uncollectible account credits accounts receivable,however,what is debited is different depending on what method is used.

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Definitions:

Employment Equity Plan

A strategic approach aimed at improving workforce representation and creating equitable opportunities for all employees, specifically focusing on eliminating barriers faced by designated groups.

Diversity Management

The practice of addressing and supporting multiple lifestyles and personal characteristics within a defined group. Management initiatives are usually aimed at creating a positive work environment where the differences of all employees are recognized and valued.

Cultural Assessment

A process of evaluating and understanding the values, practices, attitudes, and demographics within a certain culture or organization.

Diversity Management

The strategic approach aimed at fostering and maintaining a diverse workforce by addressing and valuing differences among employees, such as culture, race, gender, and age.