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:

Direct NCI

Direct Non-Controlling Interest refers to the percentage of equity in a subsidiary not held by the parent company, directly showcasing the minority shareholders' stake in the profits and losses.

Economic Entity

A unit such as a company or organization that performs economic activities and is capable of possessing assets, incurring liabilities, and conducting business transactions.

Direct Ownership Interest

A situation where an individual or entity directly owns shares or stakes in a company, allowing for direct control or influence over the company.

Ownership Interest

A share or stake denoting possession or control in a company, allowing the holder certain rights and privileges.