While Carla Is Out with Friends One Night,she Is Hit

question 70

Multiple Choice

While Carla is out with friends one night,she is hit by a speeding car.Carla is in a coma for 3 weeks.When she finally wakes up,she has trouble not only remembering what she was doing the night of the accident but also the names of her family and friends,her address,and where she goes to school.She can,however,form new memories.Carla is suffering from:

• A)short-term memory loss.
• B)anterograde amnesia.
• C)retrograde amnesia.
• D)iconic memory loss.

---

Definitions:

Direct Write-off Method

An accounting method where uncollectible debts are written off as an expense only when they are confirmed to be uncollectible.

Materiality Constraint

An accounting principle that allows for ignoring minor discrepancies that would not affect the decision-making process of users of financial statements.

Uncollectible Account Receivable

An accounting term for receivables from sales that are considered not collectible, resulting in a bad debt expense.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and thus writes off as a loss.