Which of the following is not a significant difference between the allowance method and the direct write-off method?
A. One method reports net realizable value on the balance sheet and the other does not.
B. One method conforms to GAAP and the other typically does not.
C. One method requires the estimation of uncollectible accounts and the other does not.
D. One method requires writing off of uncollectible accounts and the other does not.
Answer: D
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Use the information below for Focal Point Corp for 2015 and 2016 to answer the following question. Retained earnings, December 31, 2015 $300,000 Retained earnings, December 31, 2016 345,000 Dividends payable, December 31, 2015 19,000 Dividends payable, December 31, 2016 29,000 Net income—2016 150,000 Assume that there were no retained earnings transactions other than those dealing with
dividends and net income. How much dividends did Focal Point declare during 2016? a. $ 95,000 b. $105,000 c. $140,000 d. $150,000
Commercial paper is basically a contract for the payment of money.
Answer the following statement true (T) or false (F)
The entry required to record start-up and organization costs will cause an increase in assets
Indicate whether the statement is true or false
Credit extended to consumers for short periods of time to make specific purchases is
A) installment credit. B) non-installment credit. C) revolving open-end credit. D) minimum limit credit.