Describe the similarities and differences between the allowance method for uncollectibles and the allowance method for warranties
Similarities: The accountant makes estimates of future events in both
cases. The accountant charges the cost of estimated uncollectibles or
warranties to income in the period of sale, not in the later period when
specific items become uncollectible or break down. The income statement
reports the charge against income as an expense in both cases, although
some accountants report the charge for estimated uncollectibles as a
revenue contra.
Differences: The balance sheet account showing the expected costs of
future uncollectibles reduces an asset account, whereas that for estimated
warranties appears as a liability.
You might also like to view...
Cash and all other assets expected to be converted into cash or consumed within one year or the normal operating cycle of the business, whichever is longer, are called ____________________
Fill in the blank(s) with correct word
Which of the following dimensions of Hofstede’s cultural values is a focus on the future rather than the past and present?
A. relationship orientation B. uncertainty avoidance C. confucian dynamism D. collectivism–individualism
Sasha, in developing her pitch deck, went into great detail about her “executive” team, identifying each person and the strengths they bring to the project. She ______.
a. articulated the purpose of the venture b. identified those served by the idea c. identified the resources required d. described the team
The use of a person's likeness for commercial purposes without permission is not an invasion of privacy.
Answer the following statement true (T) or false (F)