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Exam IIA-CIA-Part3 All Questions

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Exam IIA-CIA-Part3 topic 1 question 20 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 20
Topic #: 1
[All IIA-CIA-Part3 Questions]

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. Eliminate the need for an allowance for doubtful accounts.
  • C. Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.
  • D. Use a method that approximates the matching principle.
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Suggested Answer: D 🗳️

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Langha
2 months, 1 week ago
D is correct .. A pertains to the Balance sheet method B is irrelvant because allowance will be created in both the method C is not plausible reason
upvoted 4 times
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[Removed]
8 months, 3 weeks ago
All the other answers are specifically related to accounts receiveables rather than sales.
upvoted 1 times
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Noma01
1 year ago
Where can we can the explanations for the correct answers?
upvoted 1 times
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