Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. The company's independent accountants did not protest when, contrary to GAAP, the company recorded bad debt expense only when specific accounts were determined to be uncollectible, rather than use an allowance for uncollectible accounts.
The concept demonstrated is: (A) Materiality. Correct (B) Cost-effectiveness. (C) Faithful representation. (D) Comparability.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. The company's ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Gladstone corporation is about to launch a new product. depending on the success of the new product, the company may have one of four values next year: $150 million, $135 million, $95 million, and $80 million.
Answers (1)
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,137,360 84,000 machine-hours Processing orders $ 28,479 1,100 orders Inspection $ 97,155 1,270
Answers (1)
From the above schedule of activity costs, determine the internal failure costs. a. $24,560 b. $58,500 c. $103,600 d. $30,700
Answers (1)
Which of the following statements is true of ABC systems? A. ABC system is least suited for service companies. B. ABC system is simpler compared to traditional systems. C. ABC system will always result in higher product costs. D.
Answers (1)
Assume that a small country produces only green peppers and red peppers. Last year, it produced 100 green peppers and 50 red peppers and sold them at prices of $2 per green pepper and $3 per red pepper.
Answers (1)
New Questions in Business
Ontario Resources, a natural energy supplier, borrowed $80.8 million cash on November 1, 2021, to fund a geological survey. The loan was made by Quebec Banque under a short-term financing arrangement.
Answers (1)
Where would you go to set up margins on a letter? A. Format Pages B. Page Layout C. View Pages D. Page Preview
Answers (1)
Morgan company does not ring up sales taxes separately on the cash register. total receipts for february amounted to $25,440. if the sales tax rate is 6%, what amount must be remitted to the state for february's sales taxes?
Answers (1)
The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $202,000. During 2016, the company had revenues of $402,000 and expenses of $351,000, and the company declared and paid dividends of $11,200.
Answers (1)
Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country? a. Cartel b. Joint venture c. Trading company d. Outsourcing
Answers (1)