Which of the Following Statements Relating to Nonacquiescence Is Not

question 59

Multiple Choice

Which of the following statements relating to nonacquiescence is not true?

• A)A nonacquiescence is published in the Cumulative Bulletin.
• B)This procedure may be followed for other than regular U.S. Tax Court decisions.
• C)The IRS can retroactively revoke an acquiescence.
• D)The IRS must acquiesce or nonacquiesce in every tax case.
• E)All of the above statements are true.

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Definitions:

Allowance for Doubtful Accounts

This is a contra-asset account used to estimate the portion of accounts receivable that may not be collectible.

Accounts Receivable

Funds that customers owe a company for goods or services already provided but not yet compensated for.

Allowance Method

An accounting technique used to estimate and account for a firm's potentially uncollectible accounts receivable.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.