Which Method Does NOT Use Estimates

question 52

Multiple Choice

Which method does NOT use estimates?

• A) Direct-write off method
• B) Percent-of-Sales
• C) Aging-of-receivables method
• D) Allowance method

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Definitions:

Cumulative Voting

A voting system that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates when electing directors.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Shareholder Rights

The entitlements granted to shareholders of a corporation, including the right to vote on corporate matters, receive dividends, and share in the assets upon dissolution.