The Two Methods of Accounting for Uncollectible Receivables Are the Direct

question 90

Multiple Choice

The two methods of accounting for uncollectible receivables are the direct write-off method and the:

• A)equity method.
• B)allowance method.
• C)interest method.
• D)cost method.

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Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of a leased asset.

CCA Rate

The percentage rate used in Canada to calculate capital cost allowance, which is a deductible expense for tax purposes on the depreciation of assets.

Break-Even Lease Payment

The lease payment amount at which the cost of leasing equals the financial benefits, resulting in no net loss or gain.

Straight-Line Depreciation

A way to distribute the expense of a tangible property over its lifespan in equal amounts each year.