Question

Some accountants believe that the percent of revenue method for estimating uncollectible accounts expense is superior to the percent of receivables method because it is more conservative.

a. True
b. False

Answer 1

Answer:

correct option is b. False

Explanation:

as above given statement is false because

• The current method of receiving is more traditional than the income method because the formal method depends on the receivable age.
• Therefore, the revenue percentage method is better than the percentage receivable method for estimating the total collection cost, because it is more traditionally incorrect

so answer is  false