Which of the Following Statements Is Not Correct

question 23

Multiple Choice

Which of the following statements is not correct?

• A)The adjusting entry to record the estimated loss from uncollectible accounts includes a credit to Accounts Receivable.
• B)Losses from uncollectible accounts can be estimated by analyzing sales or accounts receivable.
• C)The allowance method involves anticipating losses from uncollectible accounts by recognizing an expense for these losses before the actual accounts are written off.
• D)The balance of Uncollectible Accounts Expense appears among the operating expenses on the income statement.

---

Definitions:

Future Outlay

Potential future spending or investments that a company plans to make, which may impact its financial position.

Opportunity Cost

The lost potential gain from other alternatives when one alternative is chosen.

Potential Benefit

The prospective advantage or gain that may be realized from a specific action or decision, often considered in planning and analysis.

Probability

A quantitative assessment of an event's probability, given as a number from 0 to 1.