When comparing the direct write-off method and the allowance method of accounting for uncollectible accounts, a major difference is that the direct method

A) uses a percentage of sales method to estimate uncollectible accounts.
B) is used primarily by large companies with many receivables.
C) is used primarily by small companies with few receivables.
D) uses an allowance account.


C

Business

You might also like to view...

What are the four types of responsibility centers? What is the focus of each of these responsibility centers?

Business

A sharing of profits from the ownership of property creates a presumption that a partnership exists.

Answer the following statement true (T) or false (F)

Business

Holding cash in a temporary "parking place" is associated with which cash motive?

A) Undertaking transactions B) Holding an emergency reserve C) Holding a short-term store of value D) Paying off credit

Business

Thanks to advancements in technology and reduced barriers to entry for firms, CR has influenced the four “Ps” marketing model ___________________

a. by consumers making purchase decisions on issues beyond the traditional 4 “Ps” model of marketing. b. by consumers making purchase decisions on issues more aligned with the traditional 4 “Ps” model of marketing. c. by consumers making purchase decisions on issues that make the traditional 4 “Ps” model of marketing nearly worthless. d. by consumers making purchase decisions on issues that have very little to do with the traditional 4 “Ps” model of marketing.

Business