For a Company with Significant Uncollectible Receivables, the Direct Write-Off

question 111

Multiple Choice

For a company with significant uncollectible receivables, the direct write-off method is unsuitable because:

• A)it overstates liabilities on the balance sheet.
• B)it violates the matching principle.
• C)direct write-offs would be immaterial.
• D)it is not allowed for tax reasons.

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Definitions:

Airlines Ranking

An evaluation or classification of airlines based on various performance metrics, such as safety, punctuality, and customer service.

Spearman Correlation

This is a non-parametric tool for measuring rank correlation, gauging how effectively a monotonic function can represent the linkage between two variables.

Sample Statistic

A numerical value calculated from a sample, used to estimate a population parameter.

Spearman Rank

It's a method for assessing rank correlation without assuming any parameter, focusing on how a monotonic function might accurately describe the connection between two variables.