Question

If management underestimates the allowance for non-collectible accounts, this will cause net income for the period...

If management underestimates the allowance for non-collectible accounts, this will cause net income for the period to be overstated. True False

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Answer #1

The statement is true because management will then account for a lesser amount for non- collectible accounts causing an increase in net income.

                                                                                   

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