A Method of Estimating Bad Debts That Focuses on the Balance

question 56

Multiple Choice

A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance method based on

• A) direct write-off.
• B) specific accounts determined to be uncollectible.
• C) credit sales.
• D) aging the trade receivable accounts.

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Definitions:

Ethics Compliance Officers

Professionals responsible for ensuring that an organization's actions are in line with legal standards and ethical practices within their industry.

Fraud

The intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right, often involving financial transactions.

Employee Training

A program designed to enhance the knowledge and skills of employees, improving their performance and efficiency.

Rationalize

To attempt to justify with logical reasons, even if these are not appropriate or relevant.