The Allowance for Uncollectible Accounts Is Necessary Because

question 56

Multiple Choice

The allowance for uncollectible accounts is necessary because

• A)a liability results when a credit sale is made.
• B)when recording uncollectible accounts expense,it is not possible to predict specifically which accounts will not be collected.
• C)management should know how many credit losses have been sustained over the years.
• D)uncollected accounts that are written off must be accumulated in a separate account.

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Definitions:

False Conclusion

An incorrect or misleading outcome derived from flawed reasoning or misunderstanding of facts.

Difficulty

The level of challenge or complexity associated with accomplishing a task or solving a problem.

Temporal Synchrony Bias

The cognitive bias whereby individuals give more weight to events that happen simultaneously or in close succession.

Sinister Attribution Bias

The tendency for people to perceive more malevolence in the actions or intentions of others than is actually present.