If the Direct Write-Off Method Is Used to Account for Uncollectible

question 128

Multiple Choice

If the direct write-off method is used to account for uncollectible accounts,which of the following statements is false?

• A)An allowance account is not used.
• B)No adjustment is made at the end of the year to estimate future uncollectible accounts.
• C)Accounts receivable will be reported at its net realizable value.
• D)Bad debt expense is recorded at the time an actual bad debt is written-off.

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Definitions:

Class Conflict

Refers to tensions and antagonisms in society arising from the socio-economic interests of people belonging to different social classes.

Marx's Theory

A social, political, and economic philosophy named after Karl Marx, which examines the effect of capitalism on labor, productivity, and economic development and argues for a worker revolution to overturn capitalism in favor of communism.

Weber's Theory

Max Weber's sociological framework that emphasizes the importance of social actions and the structures of society, including class, status, and power.

Subjective Meanings

Refers to the personal, internal interpretations and understandings individuals have about the world around them.