Archer Company and Zorro Company Both Have Significant Amounts of Accounts

question 111

Multiple Choice

Archer Company and Zorro Company both have significant amounts of accounts receivable at any time,and both experience uncollectible accounts from time to time.Archer uses the percent-of-sales method to account for uncollectible accounts,and Zorro uses the direct write-off method.Which of the following statements is FALSE?

• A) Zorro Company's method complies with GAAP.
• B) Archer Company's method will provide better matching of revenues and expenses.
• C) Archer Company's net income is more accurate due to their accounting method.
• D) Zorro Company's method does not provide good matching of revenues and expenses.

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Definitions:

Populist

A political approach aiming to represent the interests of ordinary people, often characterized by anti-establishment sentiments.

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The willingness of individuals or societies to accept and support the rights of others to express and pursue differing opinions and lifestyles.

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Communities or populations that differ from the majority population in terms of racial, ethnic, religious, or linguistic characteristics, often facing social, economic, or political disadvantages.

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Individuals who are romantically or sexually attracted to people of their own sex.