Which One of the Approaches for the Allowance Method of Accounting

question 127

Multiple Choice

Which one of the approaches for the allowance method of accounting for bad debts emphasizes matching bad debts expense with revenue on the income statement?

• A)The percentage of accounts receivable approach
• B)The percentage of net credit sales approach
• C)The direct write-off method
• D)The uncollectible approach

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Definitions:

Montesquieu

A French philosopher known for his articulation of the theory of separation of powers, which is implemented in many constitutions around the world.

Tyranny

A form of government in which a single ruler holds absolute power and often governs without regard for justice or the rights of citizens.

French Political

Relating to the politics of France, known for its semi-presidential system, bicameral legislature, and a history of both monarchy and republicanism.

Democratic Governments

Systems of governance where power is vested in the people, who exercise that power directly or through elected representatives.