This Year Beta Business Tried Calculating Its Bad Debts Expense

question 41

Multiple Choice

This year Beta Business tried calculating its bad debts expense two different ways.Using a percentage of credit sales,bad debts expense would be $2,500.Based on an aging of accounts receivable,however,bad debts expense would be $2,750.If Beta Business decides to report $2,750 of bad debts expense,this accounting choice would be considered ________.

• A)conservative
• B)fundamental
• C)basic
• D)aggressive

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Definitions:

Cosmic Rays

High-energy particles, originating outside the solar system, that travel through space and strike the Earth's atmosphere.

Ultraviolet Rays

Invisible radiation with wavelengths shorter than visible light but longer than X-rays, capable of producing chemical reactions and causing harm to skin and eyes.

Visual Field

The entire area that can be seen when the eye is directed forward, including peripheral vision.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into neural signals sent to the brain.