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.

---

Definitions:

Traditional ECT

Electroconvulsive therapy as traditionally administered, where electric currents are passed through the brain to trigger a brief seizure as treatment for severe mental illnesses.

Side Effects

Unintended and usually adverse effects of a drug or medical treatment.

Halfway House

A facility that provides support and residence for people transitioning from prison, rehab, or similar situations into mainstream society.

Tertiary Prevention

Interventions designed to manage and reduce the impact of an already established disease by minimizing its symptoms and complications.