Which of the Following Are the Two Methods of Accounting

question 48

Multiple Choice

Which of the following are the two methods of accounting for uncollectible receivables?

• A)direct write-off method and liability method
• B)asset method and sales method
• C)allowance method and liability method
• D)allowance method and direct write-off method

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Current-rate Method

A method used in financial reporting to convert the financial statements of a foreign subsidiary to the parent company's currency by applying the current exchange rate.

British Tweeds

High-quality traditional British woven fabrics known for their distinctive patterns, durability, and use in classic clothing.

Pounds Sterling

The official currency of the United Kingdom.