Answer the following statements true (T) or false (F)
1) The direct write-off method of accounting for uncollectible receivables is primarily used by small, nonpublic companies.
2) In order to keep accurate records about the collection of cash for a previously written off account, a business should re-establish the Accounts Receivable by crediting the receivable account.
3) In order to keep accurate records about the collection of cash for a previously written off account, a business should re-establish the Accounts Receivable by debiting the receivable account.
4) Companies that follow GAAP are required to use the direct write-off method for uncollectible accounts receivable.
5) The direct write-off method is only acceptable for companies that have very few uncollectible receivables.
1) TRUE
2) FALSE - The receivable account is debited.
3) TRUE
4) FALSE - The allowance method is required by GAAP.
5) TRUE
You might also like to view...
The execution of a will:
A. requires that the will be witnessed by two or three interested witnesses. B. must be published to be legal if the will is made orally. C. must strictly meet all the formalities required by state law, or it is void. D. does not have to be in writing to be used to pass on property in normal circumstances.
In which of the following situations is the seller a merchant under Article 2 of the UCC?
a. Paul, a financial planner, sold his car to a neighbor. b. Randall, a marketing consultant, sold his boat to a co-worker. c. American Textiles, a textile manufacturer, contracted to sell pillows to UpTown Department Store. d. Clocks R Us, a specialty clock store, sells some of its used office furniture to another store, Spoons Over Miami.
The net present value of a customer is:
a. a measure of how customers assess the benefits of a product in making purchase decisions. b. a measure of the likelihood that satisfied customers will recommend the product to other customers. c. the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time. d. the total value of the benefits offered by a customer in a customer-supplier partnership.
Differentiation across segments refers to the degree to which competitors' offerings differ. Rationale: This describes differentiation across competitors
Indicate whether the statement is true or false