Free IIA-CIA-Part3 Training Exam Question 3
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:
A. Use an aging schedule to more closely estimate uncollectible accounts.
B. Use a method that approximates the matching principle.
C. Eliminate the need for an allowance for doubtful accounts.
D. Emphasize the accuracy of the net realizable value of the receivables on the balance sheet. Correct Answer: B