Which of the following is a limitation of the balance sheet?
a. Many items that are of financial value are omitted.
b. Judgments and estimates are used.
c. Current fair value is not reported.
d. All of these
Ans: d. All of these
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The organizational culture is also called corporate culture.
a. True b. False
On January 1, 2017, Everlight Corp
has the following account balances: Accounts Receivable 20,000 Allowance for Bad Debts 1,200 Bad Debts Expense During the year, Everlight has $155,000 of credit sales, collections of credit sales of $143,000, and write-offs of $3,300. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $1,700 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense is ________. A) a debit of $2,100 B) a credit of $4,500 C) a zero balance D) a debit of $3,300