The Most Acceptable Way to Measure Bad Debts Is By

question 170

Multiple Choice

The most acceptable way to measure bad debts is by:

• A) the direct write-off method.
• B) the percent-of-sales method.
• C) the allowance method.
• D) none of the above.

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Definitions:

Ratio

A mathematical term describing the quantitative relation between two amounts, showing the number of times one value contains or is contained within the other.

Equivalent Ratio

A proportion between two sets of quantities indicating their equality in value or function.

Smallest Term

In mathematics, it refers to the term in an expression, sequence, or series that has the smallest value.

Equivalent Ratio

A proportional relationship between two numbers or quantities, indicating how many times the first number contains the second.