The Direct Write-Off Method Records Uncollectible-Account Expense

question 90

Multiple Choice

The direct write-off method records Uncollectible-Account Expense:

• A)in the accounting period each sale occurs.
• B)at the end of the accounting period.
• C)when the specific account receivable is determined to be uncollectible.
• D)in the accounting period one year after the sale date.

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Definitions:

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.

Fixed Costs

Expenses that do not change with the level of goods or services produced within a certain range.

Technology B

This term is too generic to define without more context, as it could refer to any second or alternative technology in a specific domain or comparison.

Competitor's Technology

The technological tools, innovations, or systems used by competing businesses within the same industry.