For a Company with Significant Uncollectible Receivables,the Direct Write-Off Method

question 72

Multiple Choice

For a company with significant uncollectible receivables,the direct write-off method is unsuitable because ________.

• A) it overstates liabilities on the balance sheet
• B) it violates the matching principle
• C) it uses estimates for determining the bad debt expense
• D) companies are not able to track customer payment histories

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Definitions:

Disinhibition

When the conditioned stimulus elicits a conditioned response (CR) after a novel stimulus is presented during extinction

Novel Stimulus

A new or unfamiliar stimulus that has not been previously experienced by an organism.

Conditioned Response

A response that is acquired due to the association of a neutral stimulus with an unconditioned stimulus, leading to a conditioned reaction.

Behavioral Contrast

A phenomenon where the rate of response to a stimulus changes when the conditions of reinforcement for another stimulus are altered.