Which of the Following Is Not a Significant Difference Between

question 94

Multiple Choice

Which of the following is not a significant difference between the allowance method and the direct write-off method of accounting for uncollectible accounts?

• A)One method requires the estimation of uncollectible accounts and the other does not.
• B)One method conforms to GAAP and the other typically does not.
• C)One method reports net realizable value on the balance sheet and the other does not.
• D)One method requires writing off of uncollectible accounts and the other does not.

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Definitions:

Age

A measure of the amount of time an individual has lived, typically expressed in years.

Increases

The action or process of becoming larger or greater in size, quantity, intensity, or degree.

Sacred

Pertains to something regarded with great respect and reverence, often connected to religion or spirituality.

Profane

Something that is not sacred or religious; secular or worldly.