The Direct Write Off Method of Accounting for the Impairment

question 33

Multiple Choice

The direct write off method of accounting for the impairment of receivables

• A) is never acceptable.
• B) is an acceptable method when the effect of not applying the allowance method would be highly immaterial.
• C) is specifically disallowed under IFRS.
• D) usually results in the same net income as the allowance method.

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Definitions:

Sternum

The long, flat bone located in the center of the chest which connects to the ribs via cartilage to form the front part of the rib cage, providing protection to the chest organs.

Pelvis

The lower part of the torso, located between the abdomen and the thighs, consisting of several bones including the hip bones, sacrum, and coccyx.

Serous Membrane

A thin layer of tissue that covers internal body cavities and secretes a lubricating fluid to reduce friction from muscle movement.

Thoracic Cavity

A central compartment of the chest that houses the lungs, heart, and other vital organs.