In Estimating the Amount of Uncollectible Accounts the Accountant (1)

question 45

Multiple Choice

In estimating the amount of uncollectible accounts the accountant (1) estimates the amount of outstanding accounts receivable that the firm does not expect to collect and (2) adjusts the balance in the Allowance for Uncollectible Accounts so that, after the entry to recognize estimated uncollectibles, the balance in the account will equal the amount that the firm does not expect to collect.The name of this procedure is/are:

• A)the percentage-of-sales.
• B)aging-of-accounts-receivable.
• C)direct write-off.
• D)tax accounting.
• E)indirect write-off.

---

Definitions:

Actual Growth Rates

Refers to the increase in a company's revenue or earnings, measured over a specific period, reflecting the real expansion of its business activities.

Stock Valuation Models

Mathematical models or methods used to determine the intrinsic value of a company's stock.

Forecast Future Prices

The process of estimating the future market prices of goods, assets, or services based on historical data, market trends, and analysis.

Preemptive Rights

The right of existing shareholders to purchase new shares before they are offered to the public, to maintain their proportional ownership in the company.