Following Generally Accepted Accounting Principles,which Method of Estimating Uncollectible Accounts

question 69

Multiple Choice

Following Generally Accepted Accounting Principles,which method of estimating uncollectible accounts is NOT acceptable?

• A)allowance method
• B)percent-of-sales method
• C)aging-of-receivables method
• D)direct write-off method

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Definitions:

Federal Transfer Payments

Payments from the federal government to individuals, states, or other governmental entities without any requirement for repayment.

GDP

GDP, the cumulative market price of all ultimate goods and services produced within the confines of a country over an allotted timeframe.

Government

The system or group of people governing an organized community, often a state, including institutions and mechanisms that regulate and guide the community or society.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the tax rate on the last dollar of income earned.