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:

Dispositional Optimism

A psychological attribute that reflects the extent to which individuals hold generalized favorable expectancies for their future.

Unemployment Compensation

Financial payments made to individuals who have lost their jobs through no fault of their own, provided by the state or federal government.

Human Resources

Involves the strategic approach to managing and developing an organization's workforce to optimize productivity, culture, and employee satisfaction.

External Agency

An outside organization or company that provides services or support to another organization in a specific area, such as marketing, recruitment, or consulting.