Indicate Whether Each of the Following Statements Is True or False

question 123

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Most companies do not expect to receive the full face value of their receivables.
_____ b) The estimated amount of uncollectible accounts is called the net realizable value.
_____ c) The direct write-off method of accounting for uncollectible accounts requires the computation of the net realizable value of accounts receivable.
_____ d) The practice of reporting the net realizable value of receivables is commonly called the allowance method of accounting for uncollectible accounts.
_____ e) The materiality principle requires the computation of net realizable value for a company's liabilities.

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Definitions:

Implicit

Implied or understood though not directly expressed; involving attitudes, beliefs, or actions that are not directly observable.

Explicit

Clearly expressed or fully stated in the actual text or speech.

Maintenance Rehearsal

Practice of saying some information to be remembered over and over in one’s head in order to maintain it in short-term memory.

Repeating Items

The act of presenting the same items or information multiple times to reinforce memory or learning.