Which of the Following Statements Is FALSE

question 190

Multiple Choice

Which of the following statements is FALSE?

• A)The allowance method is a GAAP method.
• B)The direct write-off method violates the matching principle.
• C)Under the direct write-off method,accounts are expensed when they are identified as uncollectible.
• D)Under the allowance method,amounts written off are recorded as bad debts expense.

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Definitions:

Production

Production is the process of combining various material and immaterial inputs to make something for consumption or use, often involving manufacturing or creation processes.

Job-Order Costing

A costing method that assigns costs to specific production jobs or batches, useful in customized or small batch productions.

Manufacturing Overhead

Indirect costs associated with manufacturing, not directly traced to a specific product, including utilities, depreciation, and maintenance expenses.

Direct Materials

Resources that can be directly associated with the manufacture of particular goods or services.