Which of the Following Is Not a Significant Difference Between

question 49

Multiple Choice

Which of the following is not a significant difference between the allowance method and the direct write-off method?

• A)One method requires writing off uncollectible accounts and the other does not.
• B)One method conforms to GAAP and the other typically does not.
• C)One method reports net realizable value on the balance sheet and the other does not.
• D)One method requires the estimation of uncollectible accounts and the other does not.

---

Definitions:

Total Gross Pay

The total amount of money earned by an employee before any deductions or taxes are applied.

Commission

A fee paid for services or a percentage of the sales made, typically used as a compensation model in sales and services industries.

Total Gross Pay

The total amount of money earned by an employee before any deductions such as taxes, social security, and retirement contributions.

Total Commission

The cumulative amount of money paid as a commission, representing earnings from sales or transactions.