The statement that the percent sales method for estimating bad debts for a company, will only use those balances in the income statement is False.
<h3>What is the percent of sales method?</h3>
The percent of sales method is one of the methods that companies can use to estimate the bad debts that it expects in a given period. Bad debts refer to those Account Receivables that will not pay the company back even after they have taken goods or services on credit. In order to be able to use the percent of sales method, the sales of a company need to be known.
The sales that a company makes includes both the sales that the company made and the accounts receivable. The Accounts Receivables go to the Balance Sheet and Sales go to the Income Statement. This means that the Balance Sheet balances are used as well as Income Statement balances and not just the latter.
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Luxury items in a budget come from : D. Saving
People tend to buy luxury items after the other crucial needs are met, which means that it will be most likely that the budget came from the income that is intended for saving
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The answer is A. Multitasking. For three reasons: <span>You’re less productive. It is scientifically proven that there is no such thing as multitasking. You're simply switching from one task to another. When your brain tries to switch it needs to rethink about what its doing which wastes time.
You sabotage your ability to do good work. Constantly switching from one thing to another means you can't focus on one specific thing. This often leads to mistakes which means you need to take extra time to fix it anyway.
You squelch your creative juices. In other words when you go back and forth from one thing to another you're preventing your thoughts from developing into other thoughts. Which could potentially prevent a brilliant idea.Stay safe. Focus!
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Answer:
A. Unaffected
B. Unaffected
C. Understated
D. Overstated
Explanation:
C. Understated.
Understated balance is one that is reported as having a lesser balance than it actually does. example of what could cause the situation in which cash is understated is that when check is written on the disbursing bank on the last day of December with a credit to cash, and an associated debit to some expense account so as to decrease reported profits and taxes be it (direct or indirect tjaxes) for the year.
Another example is when a utility bill that is suppose to be paid by the last day of the month but failed to record the expenses, under the accrual basis of accounting, the company should recognize the expenses now even though the bill is not yet due. Until the bill is recorded, the utilities payable is understated
d. Overstated.
An overstated balance is an account balance that is reported as having a greater balance than it actually does, example of such situation is that in which an employee has misappropriated funds during the year, and draw a check transferring funds to the account with the shortage so as to cover the shortage. As of December 31, the shortage is replaced, with no reduction as yet recorded in the account on which it is drawn.
In second example of understated, expense account is understated and because of this net income is overstated.