When Comparing the Direct Write-Off and Allowance Methods,the Major Difference

question 97

Multiple Choice

When comparing the direct write-off and allowance methods,the major difference is ________.

• A) when to record bad debts expense
• B) when to recognize revenue
• C) determining the balance of the Allowance for Bad Debts account
• D) developing adequate procedures for granting credit

---

Definitions:

Benne and Sheats's Typology

A classification of group roles into three categories: task roles, social roles, and individual roles, devised by Kenneth Benne and Paul Sheats.

Task Roles

Defined roles within a group that are directly related to the accomplishment of group objectives, including positions like initiator, information seeker, and summarizer.

Balance Theory

A psychological theory suggesting that individuals strive for consistency in their relationships and perceptions of others.

Cognitive Unbalanced

A psychological state resulting from encountering information or situations that conflict with one's existing beliefs or values, leading to discomfort or dissonance.