When Accounting for Uncollectible Accounts Under IFRS,the Allowance Method Is

question 119

True/False

When accounting for uncollectible accounts under IFRS,the allowance method is used to accomplish the matching of bad debt expense to the sales of the period but not to report receivables at net realizable value.

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Definitions:

External Benefit

A benefit that an activity or transaction provides which is not captured by the consumer or producer, benefiting others in society.

Public Good

A product or service that is made available to all members of a society, typically funded by the government, and characterized by non-excludability and non-rivalry.

External Cost

represents a negative spillover effect of an economic transaction on a third party who was not involved in the transaction.

External Costs

Costs that are not borne by the parties involved in economic transactions but are imposed on others, such as environmental pollution.