The Aging of the Accounts Receivable Approach to Estimating Uncollectible

question 116

Multiple Choice

The aging of the accounts receivable approach to estimating uncollectible accounts does not:

• A)Take into consideration the existing balance in the Allowance for Doubtful Accounts.
• B)Utilize a percentage of probable uncollectible accounts for each age group of accounts receivable.
• C)Stress the relationship between uncollectible accounts expense and net sales.
• D)Tend to give a reliable estimate of uncollectible accounts because of the consideration given to the collectability of specific accounts receivable.

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Definitions:

Environmental Influences

External factors surrounding an individual or system that affect its development, behavior, or operations.

Emotionally Stable

The characteristic of being calm, not easily upset, and able to manage stress effectively.

Big Five Traits

A model that describes personality based on five broad dimensions: openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.

Interactional Psychology

A study of how individual differences interact with the environment and how this affects behavior.