If the Direct Write-Off Method Is Used to Account for Uncollectible

question 54

Multiple Choice

If the direct write-off method is used to account for uncollectible accounts,which of the following statements is false?

• A)An allowance account is not used.
• B)No adjustment is made at the end of the year to estimate future uncollectible accounts.
• C)Accounts receivable will be reported at its net realizable value.
• D)Bad debt expense is recorded at the time an actual bad debt is written-off.

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Definitions:

Social Currents

Broad, diffuse movements within society that influence collective behavior and beliefs without a formal organizational structure.

Organic Solidarity

A social cohesion based on the dependence individuals have on each other in more advanced societies, according to Durkheim.

Mechanical Solidarity

A form of social cohesion in traditional societies where unity comes from shared values and common activities.

Diversity

The inclusion of different types of people (such as different races or cultures) in a group or organization, valuing heterogeneity in various dimensions.