A disadvantage of basing bad debt expense on the historical relationship between actual bad debts and the outstanding accounts receivable balance at the end of the year is that
A) it may not recognize the cause and effect relationship between expenses and revenues.
B) it may not result in a reasonable estimate of the net realizable value of receivables.
C) it is not a generally accepted accounting procedure.
D) it is an income statement approach.
A
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Accountants need not worry about calculations based upon the concept of the time value of money
a. True b. False Indicate whether the statement is true or false
In assessing control risk for purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. Which assertion would this test of controls most likely support?
A. Classification. B. Occurrence. C. Completeness. D. Accuracy.
________ skills are relatively important for first-level managers. Hence, most supervisors start out working in a department they now supervise.
A. Decision-making B. Technical C. Conceptual D. Human relations
The most widely used nondiscounting model for capital investment decision making is the
A) payback period B) accounting rate of return C) net present value D) internal rate of return E) none of these