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NEW QUESTION: 1
In comparing companies with very different accounting practices, one way for an analyst to adjust for intangible items on the financial statements is to eliminate:
A. All amortization expense from the income statements
B. Identifying the true economic value
C. Both Aand B
D. All intangible assets from the balance sheets
Answer: C

NEW QUESTION: 2

A. Option D
B. Option C
C. Option A
D. Option B
Answer: C

NEW QUESTION: 3
Refer to the Exhibit.

Soffit plc is calculating its irrecoverable debt charge and allowance for receivables for inclusion in its year-end accounts. Based on an aged receivables schedule, it is estimated that an allowance for receivables of $125,820 is required.
In addition, a specific allowance for receivables of $18,640 is also required for two customers who are experiencing cash flow difficulties. There are also two customers who have gone into receivership while owing the company $6,300. The current allowance for receivables is $156,000.
Which is the correct entry to be made to the accounts to record these transactions?
A. D
B. A
C. C
D. B
Answer: D

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