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marta [7]
3 years ago
14

Which of the following statements is true?

Business
2 answers:
mixas84 [53]3 years ago
8 0

Answer:

The correct answer is B: direct write-off method

Explanation:

Unfortunately, some sales on account may not be collected. Customers go broke, become unhappy and refuse to pay, or may generally lack the ethics to complete their half of the bargain. It is necessary to establish an accounting process for measuring and reporting these uncollectible items. Uncollectible accounts are frequently called “bad debts.”

There are two methods of accounting to manage uncollectable accounts:

1- Allowance method

2- Direct Write-off Method

2- Under this method, there is no allowance account. An account receivable is written-off directly to expense only after the account is determined to be uncollectible. This method is required for income tax purposes. The direct write-off method is easy to operate as it only requires that specific debts are written off as they are identified with a simple journal. The problem with the method, however, is that it does not comply with the matching principle, in that revenue might be recorded in one period, when the customer is invoiced, whereas the expense of writing off the uncollectible amount is recorded in a completely different period when the amount is identified as irrecoverable.

marissa [1.9K]3 years ago
5 0

Answer: B) A)

Explanation:

  •   This kind of method, direct write-off method is referring to your question and it is considering a method that is used for recognizing bad debts expenses that are coming from credit sales of someone's account. With this method there is no account that is considering allowance and receivable that is found on someones's account is written-off directly to expense when there is uncollectible account expense.
  •   One of the greatest advantages is simplicity because those companies who are doing this method have to make only two transactions.

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On his way home from work, Phil stopped at a shopping center. He parked in front of the dry cleaner, where he could pick up his
Anika [276]

Answer:

Neighbourhood centre

Explanation:

A neighbourhood centre is a place where local local residents have access to a wide range of services. People gather for group activities, social support, public information and so on.

Phil stopped at a shopping center. He parked in front of the dry cleaner, where he could pick up his suit. He did not have to move his car because next door was a gift shop where he could pick up a gift for his niece. Conveniently enough, next door to that store was a supermarket, where he purchased essentials like milk and cornflake cereal.

Phil is at a neighbourhood centre where wide variety of services are provided locally.

7 0
3 years ago
Read 2 more answers
In year 1 the average price of X is $10, and in year 2 the average price of X is $23. If consumers buy more units of X in year 2
xeze [42]

Answer:

D

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

If good X is a normal good and the consumers income increases, the demand for good X would increase

It would have been that the Law of demand not supply that didn''t hold

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

8 0
2 years ago
Jessica is currently a freshman in college who wants to work for the health, safety, and environmental management career pathway
Gala2k [10]

Answer:

The answer is A. Jessica should get her bachelor’s degree and try to intern with a brownfield redevelopment specialist.

Explanation:

Brownfield Redevelopment Managers help make contaminated lands reusable. So, that would fall into the Health, Safety, and Environmental  management career pathway. It's not C because you would need to have a Bachelors degree to be a Health and Safety specialist. The other options are self explanatory.

5 0
2 years ago
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Identify which basic principle of accounting is best described in each item below.
adelina 88 [10]

Answer:

The Matching Principle

Explanation:

The Matching Principle of accounting holds that revenues should be matched with expenses. Hence the name.

This is to say, that revenues should only be recognized when the associated expenses with those revenues have been spent.

For example, in numeral a), we can see that Norfolk Southern Corporation recieved cash in advance, but it only recognized revenue once it had performed the services associated with that cash collection.

4 0
3 years ago
Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
Nataly [62]

Answer:

D. Separation of Duties

Explanation:

Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

4 0
2 years ago
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