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:

Labor Disputes

Conflicts between employees (often represented by unions) and their employers regarding working conditions, wages, and other employment issues.

WWII

The global conflict that occurred from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Revolutionary Union

A revolutionary union is a labor organization that seeks radical change in society and workplaces, often aiming for the overthrow of existing social, economic, and political systems in favor of more egalitarian alternatives.

Business Union

A type of labor union primarily focused on negotiating better wages, benefits, and working conditions for its members, often within a specific industry or sector.