Which of the following statements is true regarding the two allowance methods used to account for bad debts?
a. The percentage of net credit sales approach takes into account the existing balance in the Allowance for Doubtful Accounts account.
b. The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account.
c. The percentage of accounts receivable approach takes into account the existing balance in the Allowance for Doubtful Accounts account.
d. The direct write-off method does a better job of matching revenues and expenses.
c
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Identify and describe the four primary ethical frameworks from analyzing ethical issues
What will be an ideal response?
Milton and Rocco are having a heated debate regarding a national sales tax. Milton argues that a national sales tax is a proportional, vertically equitable tax. Rocco argues that a national sales tax would be a regressive, vertically inequitable tax. Explain both sides of the argument.
What will be an ideal response?
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap.
A. communications B. standards C. delivery D. social expectations E. knowledge
The court's holding in Ultramares Corporation v. Touche:
A) emancipates accountants from the consequences of fraud. B) relieves accountants from liability for reckless misstatement. C) establishes that an accountant's liability for negligence is limited to cases in which there is privity of contract. D) shows no concern for exposure of accountants to liability in an indeterminate amount for an indeterminate time to an indeterminate class.