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

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Definitions:

Reinforcement

In behavioral psychology, a process by which the likelihood of a behavior's occurrence is increased through the addition of a stimulus following that behavior.

Primary Reinforcer

An innately valuable stimulus, such as food or drink, that satisfies a biological need and reinforces behaviors without prior learning.

Aversive Stimulus

An unpleasant or noxious stimulus used to elicit a response or to condition a behavior through negative reinforcement or punishment.

Secondary Reinforcer

An acquired reinforcing stimulus, which becomes effective through its link with a primary reinforcer.