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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. Both Aand B
B. Identifying the true economic value
C. All intangible assets from the balance sheets
D. All amortization expense from the income statements
Answer: A

NEW QUESTION: 2

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

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

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