All of the Following Are True for a Company That

question 68

Multiple Choice

All of the following are true for a company that uses the allowance method of accounting for bad debts, EXCEPT:

• A)It uses a contra-asset account called the allowance for doubtful accounts.
• B)It records bad debt expense each time an account is determined to be uncollectible.
• C)It reduces its accounts receivable balance when the account is written off.
• D)It reports accounts receivable in the balance sheet at their net realizable value.

---

Definitions:

Inference Forms

Patterns or structures of logical reasoning that derive conclusions from premises based on rules.

MP

An abbreviation for Modus Ponens, a form of argument in logic where if a conditional statement ("if P, then Q") is accepted, and the antecedent P holds, then the consequent Q logically must also hold.

MT

An abbreviation often referring to Modus Tollens, a form of deductive argument where the consequent in a conditional proposition is negated, leading to the negation of the antecedent.

Simp

Slang for a person who overly defers to someone else, typically a man excessively reverent or submissive towards a woman.