Multiple Choice
The allowance for doubtful accounts balance will not be a precise amount because of which of the following reasons?
A) It is an accounting estimate based upon judgment.
B) GAAP is not clear on the calculation of the allowance.
C) It is merely a reserve that is reversed by the client as income is needed for profitable results.
D) The precision is determined by the results of confirmation responses.
Correct Answer:
Verified
Correct Answer:
Verified
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