Which of the Following Methods Does NOT Require an Adjusting

question 16

Multiple Choice

Which of the following methods does NOT require an adjusting entry to recognize bad debts?

• A) percent-of receivables
• B) aging-of-receivables
• C) percent-of-sales
• D) direct write-off

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Definitions:

Monetary Damages

Financial compensation awarded in civil lawsuits for loss or injury as a result of the defendant's actions.

Administrative Agencies

Government bodies responsible for implementing, administering, and enforcing regulations and statutes.

Delegation

In constitutional law and administrative law, a process whereby a legislature effectively hands over some of its legislative power to an administrative agency that it has created, thus giving the agency power to make law within the limits set by the legislature. In contract law, a transaction whereby a person who owes a legal duty to perform under a contract appoints someone else to carry out his performance.

Jurisprudence

The philosophy of law. Also sometimes used to refer to the collected positive law of some jurisdiction.