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azamat
3 years ago
13

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

Business
1 answer:
Fantom [35]3 years ago
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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On March 3, Cobra Inc. purchased a desk for $440 on account. On March 22, Cobra purchased another desk for $585 also on account,
alexdok [17]

Answer:

desks = 1,025

Explanation:

 440

<u>+585</u>

1,025

Notice:

We should add the cost of the two desk to get the total amount.

The debt or account payable at the moment doesn't reduce the valuation fo the desk.

The depreciation will. But we are not given with any numebr to calculate this, so we should ignore it for this assingment.

3 0
3 years ago
In ________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.
belka [17]

Answer:

Multi-level marketing.

Explanation:

A business organization that is run with multi-level marketing strategy typically has 3 sources of income:

- The amount of money that each person have to pay in order to gain the membership status.

- The amount of money that memberships owners have to pay to be a distributor of their product

- The amount of money that they get from the sales of their product.

Most multi-level marketing companies will provide their members with some sort of 'Reward' if they managed to convert other people into purchasing memberships to organization. So, the more their members convert other people, the more wealthy that members will be. This will create a hierarchy like within an organization where the members who bring the most memberships place at the top of the hierarchy.  

5 0
3 years ago
Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, an
Genrish500 [490]

Answer:

Option E Price Escalation

Explanation:

Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.

7 0
3 years ago
A department store uses a perpetual inventory system. At year-end, it shows a balance in the merchandise inventory account of $2
defon

Answer:

will probably indicate less than $2 million in merchandise on hand.

Explanation:

Perpetual inventory system is when information regarding quantity and availability in inventory of a business is continuously updated. Sale or purchase big inventory is recorded immediately with the use of computerised point of sale systems.

The department store uses a perpetual inventory system. At year-end, it shows a balance in the merchandise inventory account of $2 million. The physical inventory will probably be less than $2 million because it adjust its records to make the recorded inventory amount agree with the actual inventory on hand at end of year.

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3 years ago
The Wall Street Journal reports that the rate on four-year Treasury securities is 2.2 percent and the rate on five-year Treasury
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Answer:

option:D

Explanation:

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3 years ago
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