When Is It Acceptable to Use the Direct Write-Off Method

question 32

Multiple Choice

When is it acceptable to use the direct write-off method?

• A)If the dollar amount of uncollectible accounts is not material.
• B)If most uncollectible accounts do not occur in the period of sale.
• C)If most sales are made to other businesses.
• D)All of these answer choices are correct.

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Definitions:

Physical Stimulus

A tangible or material factor that can prompt a physical reaction in an organism.

Just-Noticeable Difference

The smallest change in stimulus intensity that can be detected, underlining the threshold at which a change is perceptible.

Detectably Different

The threshold at which a change in a variable or condition is perceptible or measurable from its previous state.

Fechner's Law

A principle describing the logarithmic relationship between stimulus magnitude and the resultant sensory experience's intensity.