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3 years ago

the direct write-off method is used for tax purposes but is generally not permitted for financial reporting. true or false?

1 answer:

4 0

True, the direct write-off method is used for tax purposes but is generally not permitted for financial reporting.

Direct write-off method occur when account receivable uncollectible are written or recorded as bad debt and this occur when the money a company is expecting to receive from their customers or clients are uncollectible because the customer did not pay.

Direct write-off method is used for tax purposes because bad debt expense is recorded based on uncollectible amount which is the amount a company is not expecting to receive from their debtors.

This method is not in accordance with the Generally accepted accounting principles which is why it is generally not permitted for financial reporting.

Inconclusion True, the direct write-off method is used for tax purposes but is generally not permitted for financial reporting.

Learn more about direct write-off method here:brainly.com/question/12419642

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What is the normal balance for the allowance for doubtful accounts (debit or credit), and why?

abruzzese [7]

The allowance for doubtful accounts has a normal credit account.

This account is a contra-asset account. Since assets have a normal debit balance, this account would have a normal credit balance.

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3 years ago

Accounts receivable: Select one: A. are reported on the income statement. B. arise from the purchase of goods or services on cre

Elena-2011 [213]

Answer:

Option (D) is correct.

Explanation:

Accounts receivables refers to a term that is used by the businesses when a company sells the goods on account or credit to its customers and customers promise to pay this amount at a later date. The accounts receivable is shown under the current assets. When a company receives the amount of receivables then it will increases its cash and decreases the accounts receivables.

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3 years ago

Why do you think states have licensing requirements for certain occupations?

kupik [55]

Answer: to prevent improper use or causing an issue with the thing they have to get a license for

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3 years ago

Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches

shutvik [7]

Answer:

Fixed Overheads Spending Variance = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = $20,000 Favorable (F).

Explanation:

Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads

= $305,000 - $300,000

= $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads

= ($5.00 × 64,000) - $300,000

= $320,000 - $300,000

= $20,000 Favorable (F)

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3 years ago

Suppose at her current level of consumption, a person enjoys going to an additional baseball game three times as much as seeing

AleksAgata [21]

Answer:

The person is NOT spending her income for both goods in a manner that maximizes her satisfaction.

Explanation:

Based on the information given The person is NOT spending her income for both goods in a manner that maximizes her satisfaction which means that she would have to INCREASE baseball games consumption and DECREASE movies consumption reason been that we were told that an individual enjoys going to baseball game three times compare to seeing new movie which therefore means The price of the ticket for a baseball game which is the amount of $30 should be increase while the price of a ticket for a movie which is the amount of $15 should be decrease.

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3 years ago