The Allowance for Uncollectible Accounts Is Necessary Because

question 56

Multiple Choice

The allowance for uncollectible accounts is necessary because

• A)a liability results when a credit sale is made.
• B)when recording uncollectible accounts expense,it is not possible to predict specifically which accounts will not be collected.
• C)management should know how many credit losses have been sustained over the years.
• D)uncollected accounts that are written off must be accumulated in a separate account.

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Definitions:

Diatoms

Microscopic algae with a unique silica-based cell wall, playing a crucial role in aquatic ecosystems as primary producers.

Stramenopiles

A diverse group of eukaryotic organisms, including diatoms, brown algae, and water molds, characterized by the presence of fine, hairlike projections on their flagella.

Paramecium

A genus of unicellular ciliates, commonly studied as a representative of the ciliate group, known for their ability to move using tiny hair-like structures called cilia.

Alveolates

A group of protozoans, including dinoflagellates, apicomplexans, and ciliates, characterized by the presence of alveoli structures beneath their cell membranes.