Multiple Choice
The materiality principle
A) States that an amount can be ignored if its effect on financial statements is unimportant to the user and permits use of the direct write-off method
B) Permits use of the direct write-off method
C) Prohibits use of the direct write-off method
D) States that an amount can be ignored if its effect on financial statements is unimportant to the user
E) Both permits and prohibits use of the direct write-off method
Correct Answer:
Verified
Correct Answer:
Verified
Q107: Capilano Company has a July 31 year-end.
Q108: Each December 31, Charity Company ages its
Q109: Joy Co. uses the allowance method of
Q110: Triple Mint Gum Co. uses the allowance
Q111: The days' sales uncollected ratio is calculated
Q113: The direct write-off method of accounting for
Q114: A dishonoured note receivable is reclassified as
Q115: Receivables can be converted to cash by
Q116: Stricker Company accepted a $20,000, 6%, 90-day
Q117: A note receivable discounted with recourse is<br>A)