1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
makkiz [27]
4 years ago
9

The direct write-off method records bad debts expense only when an account becomes uncollectible, which is not always in the sam

e period as the sale. For this reason, the direct write-off method violates the __________ principle.
Business
1 answer:
jolli1 [7]4 years ago
8 0

Answer:

The correct word for the blank space is: expense recognition principle.

Explanation:

The expense recognition principle establishes when expenses and revenues must be recorded in the accounting books of a company. Under the accrual basis of accounting method, revenues are recognized when earned and expenses whenever consumed. While using the cash basis accounting method, revenues are recognized when earned and expenses when they are paid to suppliers not when invoices are sent.

In both cases, <em>expenses and revenues are recognized during the same period when they take place. That is the reason why the direct write-off method fails to fulfill the expense recognition principle because bad debt can be recognized as an uncollectible account not necessarily in the same period where the debt instrument was issued.</em>

You might be interested in
Teams comprised of people from various disciplines are a primary component of ________, which involves product and process desig
nikitadnepr [17]

The answer in the space provided is concurrent engineering. It is because concurrent engineering is the one responsible of having to lead improvement in regards of the organization or company’s reduced cost or its productivity in which is helpful and could brought it for their own benefit.

8 0
3 years ago
In 2007, Terry Inc. provided the following items in their footnotes. Their cost of goods sold was $22 billion under FIFO costing
nikdorinn [45]

Answer:

$22.2 billion

Explanation:

Calculation to determine How much would they report as LIFO cost of goods sold

Cost of goods sold=$22 billion + ($0.8 billion ­ $0.6 billion)

Cost of goods sold=$22 billion + $0.2 billion

Cost of goods sold= $22.2 billion

Therefore How much would they report as LIFO cost of goods sold would be $22.2 billion

7 0
3 years ago
According to the U.S. Department of Commerce, which of the following, occurs whenever a U.S. citizen, organization, or affiliate
Alborosie

Answer:

this question is not true/false

the answer is: foreign direct investment

Explanation:

Foreign direct investment (FDI) takes place when a domestic company or individual invests directly in new facilities to produce goods or services in a foreign country. Or as the US Department of Commerce clearly states, when a US citizen or organization acquires at least 10% of a foreign business.

FDI is a game played on both sides. For example, the US received $296.4 billions during 2018 as FDI from foreign investors.

5 0
3 years ago
Merle Industries had been selling its product for $24 per unit, but recently lowered the selling price to $17 per unit. The comp
Lana71 [14]

Answer:

The company’s inventory be reported on the balance sheet as $3,150.

Explanation:

GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.

According to given data

Available Inventory = 210 units

Cost of Inventory = 210 units x $20 = $4,200

Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.

So,

Net realizable value is = 2,100 units x $15 = $3,150

As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.

7 0
3 years ago
One who, in good faith and without knowledge of defect, pays valuable consideration for a note before it is due is referred to a
iogann1982 [59]

Answer:

The correct answer to the following question is A holder in due course.

Explanation:

A holder in due course is said to be a legal term , which describes about the person who has in good faith obtained a negotiable instrument and he or she has exchanged something valuable for that instrument, but the person is unaware of the fact that there might be some defect in the instrument like in title of person who is negotiating that contract.

6 0
3 years ago
Other questions:
  • Avon Barksdale's operation uses large quantities of prepaid cell phones, on average 500 per week with a standard deviation of 45
    12·1 answer
  • Merrell Corp. discontinued a component of its business on October 17. For the year, the discontinued component had operating inc
    8·1 answer
  • Investors gravitate toward the latest hot stock even though it has never paid a dividend. Even though net income is projected to
    13·1 answer
  • The entries that transfer the​ revenue, expense, and dividends balances to the Retained Earnings account to prepare the​ company
    8·1 answer
  • Who is responsible for managing the entire wardrobe of a theatrical production once performances begin?
    7·1 answer
  • Suppose that the price of chicken rises sharply compared to the price of turkey. In response, consumers buy more turkey and less
    9·1 answer
  • Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-h
    14·1 answer
  • Calculating and using Dual Charging Rates
    13·1 answer
  • When listing a reference on your resume, you should: A) Use a fancy font and eye-catching color B) Not list references on your r
    6·1 answer
  • Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $54,000. Budgeted cash rec
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!