Which Statement Regarding the Direct Write-Off Method of Bad Debts

question 6

Multiple Choice

Which statement regarding the direct write-off method of bad debts is not true?

• A) Future bad debts are not required to be estimated.
• B) The method is justified on the basis of simplicity.
• C) Bad debts are matched against the related sales revenue.
• D) Bad debts are written off when they are determined to be uncollectable.

---

Definitions:

Older Information

Previous or existing knowledge, facts, or data that have been accumulated over time.

Newer Information

Refers to the most recent data, facts, intelligence, or knowledge that has been acquired or updated.

Retroactive Interference

A phenomenon where new memories impair the retrieval of older memories.

Newer Information

Recent data or facts received or learned about something or someone, especially that which is timely and relevant.