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The direct write-off method is used when:
External Financing
Funds raised from outside the business, including bank loans, equity investments, and bond issues.
Dividend Payout
The portion of the company's earnings paid out to shareholders, usually in the form of dividends.
Sales Growth
This metric measures the increase in sales revenue over a specific period, indicating the business's ability to grow its operations and revenue.
External Financing
Funds that a business raises from outside sources to finance its operations or growth, such as loans or equity investments.
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