The Percent-Of-Sales Method

question 160

Multiple Choice

The percent-of-sales method:

• A) computes uncollectible-account expense as a percent of accounts receivable.
• B) takes a balance sheet approach.
• C) employs the expense recognition (matching) concept.
• D) will result in the same amount of estimated uncollectible accounts expense as the aging method.

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Definitions:

Financial And Non-financial Benefits

Rewards given to employees that include monetary compensation and non-monetary incentives such as recognition.

Supervisor And Peer Support

Assistance and encouragement provided by both supervisors and colleagues in the workplace to aid an individual's development or performance.

External Environment

Factors outside an organization that can affect its performance, including economic, social, technological, and political influences.

Trade Agreements

Formal arrangements between countries to regulate tariffs, trade barriers, and the exchange of goods and services.