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:

Abnormal Earnings

Income that deviates significantly from what is typical or expected, usually referring to profits significantly higher or lower than those typical for the industry or the company's history.

Valuation Approach

The methodologies and procedures used to determine the value of an asset, a company, or a financial instrument.

Expected Earnings

The anticipated profit or income generated by an investment or a business activity in a future period.

Disadvantages

The drawbacks or unfavorable aspects associated with a particular decision, action, or strategy.