All agreements are contracts.

A company has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of

a. $18,000 b. $19,000 c. $17,980 d. $17,000

Financial statements in the United Kingdom are supposed to provide a "true and fair view" of the firm's financial position and results of operations. How does U.K. GAAP define "true and fair view?"

A. Objective, free from bias B. Statements must comply with accounting standards C. Relevant D. U.K. GAAP does not specifically define "true and fair view."