Critical Thinking Should Involve

question 141

Multiple Choice

Critical thinking should involve

• A)a tendency to be skeptical of all claims.
• B)close-mindedness about claims and the evidence that supports them.
• C)a set of skills for evaluating claims in an open-minded and careful manner.
• D)skepticism of any scientific theory unless there is no disconfirming evidence.

---

Definitions:

Bad Debts Expense

An expense reported on the income statement, accounting for the estimated amount of accounts receivable that are not expected to be collected.

Allowance Method

The allowance method is an accounting technique used to estimate and prepare for the amount of accounts receivable that may not be collectible.

Journal Entries

Records of financial transactions in the accounting system, detailing debits and credits to various accounts.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.