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Illusion [34]
3 years ago
15

The expense recognition (matching) principle, as applied to bad debts, requires: Multiple Choice That bad debts not be written o

ff. That bad debts be disclosed in the financial statements. That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions. The use of the allowance method of accounting for bad debts. The use of the direct write-off method for bad debts.
Business
2 answers:
Charra [1.4K]3 years ago
5 0

Answer:

The use of the allowance method of accounting for bad debts.

Explanation:

We use the allowance method to match the expected ad debt with the sales or account receivables which generates.

As sales of a givne month can be declared uncollectible after several month using a direct method we are putting the burden of the uncollectible in another accounting period while leaving the one which did that sale untouched.

The allowance makesthe expense in the same time period thus, it follows the recognition principle.

Leona [35]3 years ago
4 0

Answer:

The use of the allowance method of accounting for bad debts.

Explanation:

The matching principle is one of the cornerstones of accrual accounting, since t states that when revenue is recorded, you must recognize all related expenses with it. E.g. you cannot only record sales revenue, you must also record COGS. Regarding bad debt expense, the matching principle states that the provision for bad debts (allowance for doubtful accounts), must be recorded in the same accounting period.

So the revenues generated by credit sales have to be matched to both COGS and a provision for uncollectible accounts or bad debt. US GAAP establishes that estimates for bad debt should be recorded in the allowance for doubtful accounts, although the estimation method is not mandatory.  

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When total production is greater than total expenditures, __________ is produced than households want to buy, which leads to ___
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If the total production exceeds the total expenditures this means that there are more goods are produced than the demand of each households. Thus, this will lead to an increase of inventory. Then this will signal the manufacturing firm that they have overproduced the goods which will lead to cut back the production. This leads to lesser prices and/or unsold goods alongside with the likelihood of unemployment. Therefore the answer is d.
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Which of the following are normally recorded on a registration card?
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2 years ago
2-1.3 Which of the following statements about data storage is (are) true? A chart of accounts is a list of the numbers assigned
monitta

Answer:

  • A chart of accounts is a list of the numbers assigned to each general ledger account.
  • A subsidiary ledger contains detailed data for any general ledger account with many individual subaccounts.

Explanation:

A chart of accounts contains a list of all the numbers assigned to balance sheet and income statement accounts. The account numbers allow transaction data to be coded, classified, and entered into the proper accounts.

Subsidiary ledger s are used to record details information for a general ledger account that contains many subaccounts, like accounts receivable (at last 1 subaccount per client), inventory (at least 1 subaccount per product) and accounts payable (at least 1 subaccount per creditor).

4 0
3 years ago
Read 2 more answers
If the variable costs of producing two books are $100, what is the marginal cost of producing one more book?
Ierofanga [76]

Answer:Hi Martina, okie anyway Im taking the test rn too I just answered Tanya, its $25

Explanation:

1 book= 50

2 books= 100

100-50=50

Then 50/2=25

3 0
3 years ago
Explain how the political systems of countries differ. Explain how the economic systems of countries differ. Explain how the leg
KIM [24]
<h2>Every country operate in a different yet similar system of both political and social affairs.</h2>

Explanation:

Every country operate in a different yet similar system of both political and social affairs. In terms of political differences, some countries have parliamentary governments while some countries like the US have presidential governments.

Regardless of how each country operate politically, most of the operational system of these countries are embedded in democracy and the general welfare of its citizens. The differences occur because of these operational systems of each country. They could differ in policies, reforms or laws which are based on the interests of its people and the nation.

In economic terms, the differences occur when governments prioritize what economic policies or model they choose to implement. Economic systems of a country change according to the need of the times. For instance,  China initially, after its independence, chose to remain a closed economy until it reformed its policies in 1978 to finally open up the country.

Legal systems of countries differ from one another as every country use a civil law system based on its cultural, social, political and historical circumstances. For instance, in US each state has the power to establish its own legal procedures while in some country, every state must follow a uniform civil code.

As we know the political economy refers to both the political and economic systems of a country, management practice of national differences is important to taken into account before securing economic relations with another country. Management practice of national differences helps in finding favorable economic and political systems around the world for a country to make both economic and political partnership with.

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