PRC-1 · Chapter 5 · Question 70 of 100
Which of the following scenarios describes a 'Good Debt'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) An account receivable that is clearly identified as collectible with certainty.
Explanation
A good debt is an account receivable that is clearly identified as collectible with certainty. No accounting treatment (allowance or write-off) is required for a good debt.
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