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Exam IIA-CIA-Part3 topic 2 question 104 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 104
Topic #: 2
[All IIA-CIA-Part3 Questions]

Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables.

Which of the following would be the best argument for using the direct write-off method?

  • A. It is useful when losses are considered insignificant.
  • B. It provides a better alignment with revenue.
  • C. It is the preferred method according to The IIA.
  • D. It states receivables at net realizable value on the balance sheet.
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Suggested Answer: B 🗳️

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KonradK
11 months, 2 weeks ago
Selected Answer: A
Agree A is correct
upvoted 2 times
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Crazyhydra
1 year, 4 months ago
the correct answer is A
upvoted 2 times
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