Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A disadvantage of basing bad expense on the historical between actual bad debts and the outstanding accounts receivable balance at the end off the year

A disadvantage of basing bad expense on the historical between actual bad debts and the outstanding accounts receivable balance at the end off the year is that: a. it may not recognize the cause and effect relationship between expenses and revenues. b. it may not result in a reasonable estimate of the net reliable value of receivables. c. its not a general accepted accounting procedure. d. it is an income statement approach.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Vanderbeck

13th Edition

0324191693, 978-0324191691

More Books

Students also viewed these Accounting questions