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NACVA Exam CVA Topic 5 Question 79 Discussion

Actual exam question for NACVA's CVA exam
Question #: 79
Topic #: 5
[All CVA Questions]

One way is to compare the historical percentage of bad debt losses from past credit sales with the percentage current credit sales being charged to bad debt expense to see if too little or too much is currently being charged. Another approach is:

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Suggested Answer: D

by Margart at Jan 28, 2024, 07:58 AM

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Frederick
15 days ago
Option B is the answer, no doubt. Comparing the allowance to overdue accounts is the way to go - it's like comparing apples to apples, you know?
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Deeanna
16 days ago
B is the way to go. Comparing the allowance to overdue accounts is a smart move - that's where the real risk lies.
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Ollie
2 days ago
User 1: I agree, comparing the allowance to overdue accounts is crucial.
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Hassie
27 days ago
I'm going with B as well. Comparing the allowance to overdue accounts makes the most sense in terms of assessing the bad debt provision.
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Arlette
29 days ago
B sounds like the best option to me. Comparing the allowance to the overdue accounts is a practical way to evaluate if the allowance is sufficient.
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Aretha
2 months ago
But wouldn't comparing the aged account receivable schedule allowance give us a better indication of potential bad debt losses?
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Ozell
2 months ago
I disagree, I believe the answer is A) To compare the unearned revenue schedule allowance relative to the amount of overdue accounts.
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Aretha
2 months ago
I think the answer is B) To compare the aged account receivable schedule allowance relative to the amount of overdue accounts.
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Mari
2 months ago
I think the correct answer is B. Comparing the aged account receivable schedule allowance to the amount of overdue accounts is a good way to assess the adequacy of the allowance.
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Jamey
18 days ago
So, B is the correct answer for sure.
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Fletcher
1 months ago
Definitely, it's important to have a realistic estimate of bad debt losses.
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Carole
1 months ago
I think it helps in determining if the allowance is sufficient to cover potential bad debts.
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Jolanda
1 months ago
I agree, comparing the aged account receivable schedule allowance to the amount of overdue accounts is a key indicator.
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Rhea
2 months ago
But wouldn't comparing it to overdue accounts make more sense in terms of bad debt losses?
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Sol
2 months ago
I disagree, I believe the answer is C) To compare the aged account receivable schedule allowance relative to the amount of expired accounts.
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Rhea
2 months ago
I think the answer is B) To compare the aged account receivable schedule allowance relative to the amount of overdue accounts.
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