Under what condition is the direct write-off method acceptable under GAAP?
What will be an ideal response?
The direct write-off method is only acceptable if uncollectible accounts expense is immaterial to the company's financial statements.
You might also like to view...
Distinguish between treaties and conventions
What will be an ideal response?
Which of the following statements is true of the effect of the group on ethics in a corporate organization?
A. Coupled with an overemphasis on profit, the group effect reduces the difficulty of achieving an ethical business corporation. B. In corporate life, it is difficult to overlook the unethical behavior of a superior when many fellow employees are also overlooking it. C. Individuals in groups may feel a diminished sense of responsibility for actions taken, which invites ethical compromise. D. Individuals feel more responsible for what happens in a group than in their individual lives. E. Individuals hardly do unethical things when they are part of a group.
To qualify as a qualifying relative, an individual must meet three of five tests. These are the gross income test; the support test; the relationship or member of the household test; the citizen or residency test; and the joint return test
a. True b. False Indicate whether the statement is true or false
What is the overall effect when a good or service is priced higher than competitors?
A) There will be an implication of higher quality standards.
B) There will be greater demand for the product.
C) Sales will start slow, but increase over time.
D) There will be a larger market size, but smaller profit.
E) There will be a smaller market and smaller profit.