Which statement is true?
a. The allowance method uses an estimate based on (1) a percent of sales or (2) an analysis of receivables.
b. Direct write-off is best suited for large companies and those with a large amount of receivables.
c. The direct write-off method uses an allowance account.
d. Adjusting entries are necessary under both the direct write-off and the allowance methods.
a
You might also like to view...
Which of the following factors does an auditor generally need to consider in planning a particular audit sample for a test of controls?
A. Number of items in the population. B. Risk of assessing control risk too high. C. Total dollar amount of the items to be sampled. D. Desired confidence level.
Which of the following characteristics is associated with core self-evaluation?
A. conscientiousness B. extroversion C. emotional stability D. agreeableness
A vertically integrated company is less dependent on its suppliers than a company that is not vertically integrated.
Answer the following statement true (T) or false (F)
A buying situation in which a business customer signals its satisfaction by agreeing to purchase the same product at the same price is called a
A. repeat buy. B. straight rebuy. C. new buy. D. modified rebuy. E. quick buy.