Which of the Following Statements Is Incorrect

question 9

Multiple Choice

Which of the following statements is incorrect?

• A) A debt is bad as soon as the receivable has passed its due date.
• B) Bad debts are a cost of selling on credit.
• C) An outstanding debt may be turned over to a collection agency.
• D) Bad debts should be deducted as an expense in the same accounting period in which the credit sale is recognised.

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Definitions:

Power

The ability to influence or control the behavior of people and the course of events.

Information Power

is derived from possessing, controlling, or having access to valuable information that others need or want.

Company Intranet

A private network within an organization, designed to facilitate communication, collaboration, and information sharing among employees.

All-channel Formation

A communication structure where all members of a group or network can communicate equally and directly with each other.