The Use of the Allowance Method Is an Attempt by Accountants

question 80

True/False

The use of the allowance method is an attempt by accountants to match bad debts as an expense with the revenue of the period in which a sale on credit takes place.

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Definitions:

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when a choice is made between several mutually exclusive options.

Avatar

A graphical representation of a user in digital media, often used in social media, games, and virtual reality environments.

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A permanent form of body art made by inserting ink into the layers of skin to change the pigment.

Esther Duflo

A French-American economist known for her research in development economics and as a recipient of the Nobel Prize in Economics.