IIA
IIA-CIA-PART3 · Question #329
Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables. Which of the following would be the best argument for…
The correct answer is C. It is the preferred method according to The IIA. You've hit your session limit · resets 10:20pm (America/New_York)
Question
Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables. Which of the following would be the best argument for using the direct write-off method?
Options
- AIt is useful when losses are considered insignificant.
- BIt provides a better alignment with revenue.
- CIt is the preferred method according to The IIA.
- DIt states receivables at net realizable value on the balance sheet.
How the community answered
(27 responses)- A4% (1)
- B11% (3)
- C81% (22)
- D4% (1)
Explanation
You've hit your session limit · resets 10:20pm (America/New_York)
Community Discussion
No community discussion yet for this question.