What is the effect of bad debts on revenue recognition under the proposed ASU?
A. Bad debts are recognized as an extraordinary item.
B. Bad debts must be estimable in order to recognize revenue.
C. Bad debts are deducted from revenue to calculate net revenue on the income statement, similar to sales returns.
D. Bad debts are an expense.
Ans: C. Bad debts are deducted from revenue to calculate net revenue on the income statement, similar to sales returns.
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If an employee incurs business-related entertainment expenses that are fully reimbursed, it is the employer who is subject to the 50% limitation.
a. true b. false
Which of the following statements is true regarding competitive marketing intelligence?
A) The advantage of using competitive marketing intelligence is negligible. B) The goal of competitive marketing intelligence is to improve recruiting efforts. C) Competitive marketing intelligence relies upon costly internal databases. D) Competitive marketing intelligence relies upon publicly available information. E) Companies using competitive marketing intelligence routinely ignore consumers' online chatter.