Which of the Following Statements Is Not Correct

question 18

Multiple Choice

Which of the following statements is not correct?

• A) Under the direct write-off method,no provision is created when the risk of uncollectibility appears.
• B) All countries allow the direct write-off method.
• C) The direct write-off method shows receivables at their nominal value when in fact,there is a known risk of uncollectibility.
• D) The only situation where the direct write-off method might not create a misrepresentation of the financial situation of the firm is when the sales revenue and the percentage of uncollectible receivables is essentially constant or stable.

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Definitions:

Jim Crow Laws

A series of state and local statutes in the Southern United States, enforcing racial segregation and discrimination against African Americans from the late 19th century until the 1960s.

Private Spaces

Areas intended for individual use where access is restricted, emphasizing privacy and personal freedom.

Second-Class Citizens

Individuals who are considered inferior by law, custom, or societal norms, and are thus denied the full rights and privileges afforded to mainstream members of society.

John Mercer Langston

An influential African American abolitionist, attorney, educator, and politician known for his advocacy for the rights of blacks.