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:

Tax Return

A formal statement of income filed with a tax authority to calculate and pay taxes owed.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Scientific Study

The pursuit and application of knowledge and understanding of the natural and social world following a systematic methodology based on evidence.

Exercise

Structured activities whose goal is to improve health.