Which accounting concept is applied when an entry is made for bad debts? A. Going-concern B. Materiality C. Accruel D. Historic cost

Q: Which of the following statements regarding accounting change is correct? a. Change in depreciation…

A: Accounting changes means when there is some change in the process and methodologies related to…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A:

Q: a.  Determine the amount of the adjusting entry for uncollectible accounts. b.  Determine the…

A: Allowance for Doubtful has a Credit Balance In Normal Situation Amount of Uncollectible Accounts =…

Q: t is the required adjusting entry for accrued liabilities and for accrued receivables? What is the…

A: An accrued liability occurs when you gain a debt, or incur an expense that you have not paid. For…

Q: Which of the following would not overstate current-period net income?a. Capitalizing an expenditure…

A: Net income: Net income refers to the income earned by the company after providing for all the…

Q: Which of the following items is an example of general unsecured creditors? Group of answer choices…

A: The unsecured creditors are the one who do not have any right over the assets of the business in…

Q: Using the allowance method, is Bad Debt Expense recognized in the period in which ( a ) sales…

A: Using the allowance method, Bad Debt Expense is recognized in the period in which sales related to…

Q: Why does the accounting profession require the use of the allowance method of accounting for losses…

A: Step 1 Basically, the allowance method is the reporting way to report the loss of credit in books of…

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a  business entity on a…

Q: Withdrawals by an owner are found on the income statement as an expense True False

A: The income statement indicates the profitability of the company. The income statement contains the…

Q: What is false about the matching principle? a. Incurred expenses should be matched with earned…

A: Matching principles are those principles which emphasize on matching of revenues of the business…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A: Allowance method:   It is a method for accounting for uncollectible receivables, where uncollectible…

Q: Which one of the following best describes the allowance for doubtful accounts? a.Statement of…

A: Allowance for doubtful debt is created for the accounts receivables whose recovery is uncertain. It…

Q: How are anticipated administrative expenses reported on a statement of financial affairs?a. As a…

A: The administrative expenses are incurred in the day-to-day operations of the company. These are…

Q: The net figure for accounts receivable (debtors) after deducting the allowance for uncollectible…

A: Accounts receivables are those customer accounts to whom business has made credit sales on account…

Q: In a current account, the payee is the debtor and the drawee is the creditor. True False

A: Lets understand the basics. Payee is a person on whom payment is needs to make so he is a creditor.…

Q: A debit balance in the Income Summary account represents a net loss. O True O False

A: The income summary account is a nominal account used to close the temporary accounts of the business…

Q: Under the allowance method of accounting for credit losses, the entry to write off a specific…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Q: The concept underlying the malching at Net income shouid be reported on an annua basis. a. b. All…

A: Accounting Principles- Accounting principles are the ideologies that are to be applied by a…

Q: If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a…

A: Generally, Assets have a Debit Balance If any account generally has a debit balance and if a…

Q: The allowance for doubtful is not:  a. credited when bad debts expense is estimated and recorded…

A: Allowance for doubtful account is a contra asset account which is related to accounts receivables.…

Q: Amounts owed by external parties generally as a result of the entity providing goods or services to…

A: 1) Bad debts are the noncollectable receivables which are to be written off as an expense to the…

Q: Which one of these statements is true of the accumulated depreciation account? O the account is to…

A: Accumulated depreciation is the total of depreciation applied on a fixed asset on a particular point…

Q: Which of the following statements is false? Group of answer choices A)The journal entry to record…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: A credit to a liability account indicates an increase in the amount owed to creditors. must be…

A: Creditors are the liabilities to the organizations. They have credit Balances. That is why if there…

Q: Which item would not appear on a Balance Sheet?     a. Gross Profit b. Accounts Receivable c.…

A: Gross Profit - Gross Profit is defined as net sales minus the cost of goods sold.  Since it shows…

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: Under the allowance method for uncollectible receivables, the entry to record uncollectible-account…

A: Allowance method: It is a method for accounting bad debt expense, where uncollectible accounts…

Q: Financial Statement Focuses on accounting for liabilities and non-owner financing. Consider how…

A: The study of accounting is based on some fundamental accounting principles, concepts or conventions.…

Q: Which of the following accounts is a liability? Accounts Receivable Service Revenue Unearned…

A: Accounts receivables is the amount of money not yet paid by the customers on the goods purchased…

Q: Distinguish the difference between Bad Debts and Provision for Doubtful Debts, indicating the…

A: When a account receivable is clearly identified as the amount will not be received then such account…

Q: what is the expense account for provision for non - collection from customers. * bad debt expense O…

A: The cost of operations that a firm incurs in order to earn revenue is referred to as an expense.…

Q: An allowance for doubtful debts is created:     a. When debtors become bankrupt   b. When…

A: Accounts receivable are the asset represents the due balance owed by the customer which requires to…

Q: What is the proper classification of Prepaid Expense account? a.) Current Asset b.) Current…

A: The correct option with proper explanation are as follows. The expenses which is paid in advance is…

Q: How are gain contigencies reported in the financial statements?

A: A gain contingency A  gain contingency  is a possible gain arising from past events but whose…

Q: Recording bad debt expense under the allowance method will have what effect on the financial…

A: The allowance method involves setting aside a reserve for bad debts that are expected in the future.…

Q: What is the difference between the cash basis and accrual basis of accounting as to the following:…

A: The answer for the theory question on difference between cash basis and accrual basis of Accounting…

Q: When using the allowance method, failure to record bad debt expense would have what effect on the…

A: The allowance method of bad debts recognition is an accounting technique in which bad debts for the…

Q: Bad debt expense is normally reported on the income statement as a(n) a. Operating expense b.…

A: An expense that is recognized as a receivable is no longer collectable is known as a bad debt…

Q: Which accounting concept is applied when an entry is made for provision for bad debts? A. Going-…

A: A. Going - concern - Under this concept , it is assumed that an entity will continue its operation…

Q: Which of the following accounts is a liability? a. Accounts Receivable b. Service Revenue c.…

A: Liability refers to state of being liable or taking legal possession of something.

Q: When using the allowance method, failure to record bad debt expense would have what effect on the…

A: Failure to record Bad Debt expense (Direct impact): Expense (Bad debt Expense) understates…