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

Prepare adjusting journal entries for a variety of transactions.

Explain the importance of an adjusted trial balance and its role in the accounting cycle.

Analyze the impact of accounting policies and choices on profitability and financial position.

Understand the structure and purpose of T-accounts in accounting.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Market System

A system where economic decisions, such as pricing and investment, are determined by supply and demand.

Regulatory Mechanism

A system or process designed to control or govern conduct, often within industries or sectors, through guidelines or rules.

Laissez-faire Capitalism

An economic system characterized by minimal government intervention and the free operation of market forces.