Which of the Following Is Not a Problem of APB

question 56

Multiple Choice

Which of the following is not a problem of APB Statement 4 mentioned in the text?

• A)It is questionable whether the objectives can be implemented by means of the various principles derived from the existing body of accounting.
• B)It contains a loosely worded set of definitions.
• C)It attempts to be all things to all people.
• D)It does not state important evolutionary changes that had begun to occur.

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Definitions:

Income Statement Approach

A method for estimating bad debts expense that focuses on income statement relationships, often involving a percentage of sales or accounts receivable.

Balance Sheet Approach

A method in accounting that focuses on valuing all assets and liabilities listed on the balance sheet at their current market values to provide a snapshot of a company's financial condition at a specific point in time.

Direct Write-off Approach

An accounting method for dealing with bad debts where specific accounts receivable are written off against income at the time they are determined to be uncollectible.

Normal Balance

The side of an account that is increased, which for assets, expenses, and dividends is the debit side, and for liabilities, equity, and revenue is the credit side.