ting Principles Volume 1, 10th Canadian Edition [Kermit Larson) (2).pdf Recognition of accounts receivable is directly linked to the accounting standard for which of the following Cash and cash equivalents b. Accounting for property, plant, and equipment c. Revenue recognition d. Expense recognition i 2. The allowance method to account for uncollectible. accounts receivable is based on which accounting principle a. Matching principle b. Revenue recognition principle c. Business entity principle d. None of the above. 3. The estimated bad debt expense is recorded with the fol lowing adjusting entry at the end of the accounting period Dr. Bad Debt Expense Doubtful Accounts. Cr. Allowance for b. Dr. Allowance for Doubthal Accounts, Cr. Bad Debt Expense. c. Dr. Bad Debt Expense Receivable. d. Dr. Accounts Receivable : Cr. Accounts Cr. Cash 4. Recovery of a bad debt indicates which of the following A customer refuses to pay for the outstanding balance h. The customer pays off all of the outstanding balance Bad debt expense is reversed d. None of the above 5. The aging of accounts receivable approach the most able of the three approaches to estimate fad debe by applying a. a lower percentage to accounts that have been qui standing the longest b. a higher percentage write-off to account balances with higher sales for the period. c. a higher percentage to accounts that have been out standing the longest d. None of the above 6. The percentage of sales approach to estimate bad debt in volves an income statement approach that emphasines matching the dollar value of credit sales for the period to the dollar value of the bad debt expense b. matching the dollar value of outstanding receivables for credit sales to the dollar value of bad debt expense c. recording a higher bad debt expense for accounts that have been outstanding for a longer period of time 4. recording the dollar value of sales for the period to the dollar value of the allowance for doubtful accounts 7. The direct write-off method is permitted a. When the percentage of uncollectible accounts is de- termined to be unrelated to sales volume b. Only in circumstances where the total reported ac counts receivable balance is insignificant to the finan cial statements as a whole e. If the CFO determines that the aging schedule does not impact expected future collections of outstanding A/R balances 4. Under no circumstances under generally accepted ac counting principles 572