With Respect to the Write-Off of an Uncollectible Account Receivable

question 50

Multiple Choice

With respect to the write-off of an uncollectible account receivable against the allowance for bad debts, a sound system of internal control would require:

• A) the write-off be approved by two employees.
• B) an investigation of why credit was extended to this customer in the first place.
• C) a lawsuit to be initiated to recover the uncollectible amount.
• D)the write-off to be made within six months after the date of sale.

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Definitions:

Quebec Civil Code

The legal code governing civil matters in the province of Quebec, Canada, distinct for its civil law tradition.

Napoleonic Code

A comprehensive legal code established by Napoleon in 1804, which strongly influenced the law systems of many countries.

Justinian's Code

A collection of laws and legal interpretations developed under the sponsorship of the Byzantine Emperor Justinian I.

Usable Definition

A description or explanation of a term that is practical and understandable for application.