Which of the Following Statements Is True of the Direct

question 22

Multiple Choice

Which of the following statements is true of the direct write-off method?

• A)GAAP requires public companies to follow the direct write-off method.
• B)It provides better matching of revenues with expenses.
• C)It results in more accurate net income than any other method.
• D)It is only suitable for small companies that have very few uncollectible receivables.

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Definitions:

Selling Electricity

The process of marketing and distributing electrical power to consumers, typically conducted by utility companies.

Federal Government

The central government of a federation, which holds the authoritative powers that are delegated to it by the constitution and is typically divided into executive, legislative, and judicial branches.

Twenty-First Amendment

This amendment to the United States Constitution effectively ended Prohibition by repealing the Eighteenth Amendment, allowing for the sale, manufacture, and transportation of alcohol.

Prohibition

A period in the early 20th century when the sale, manufacture, and transportation of alcoholic beverages were banned in the United States by the 18th Amendment.