The Use of the Multiplication Rule Requires Which of the Following

question 134

Multiple Choice

The use of the multiplication rule requires which of the following?

• A)The events being considered are associated.
• B)The events being considered occur independently.

---

Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust for bad debts.

Direct Write-Off Method

An accounting practice that involves directly writing off an outstanding receivable if deemed uncollectible, impacting earnings directly.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Direct Write-Off Method

An accounting method used to recognize bad debts only when specific receivables are deemed uncollectible, without maintaining an allowance account.