Which of the Following Statements Is False

question 96

Multiple Choice

Which of the following statements is false?

• A)The journal entry to record bad debt expense decreases current assets.
• B)The journal entry to record bad debt expense decreases retained earnings.
• C)The journal entry to write off an uncollectible account receivable decreases operating income.
• D)The journal entry to write off an uncollectible account receivable does not affect current assets.

---

Definitions:

Required Production

The amount of production a company needs to meet its sales goals and inventory policies, often calculated based on forecasted sales plus target ending inventory minus beginning inventory.

Manufacturing Corporation

A manufacturing corporation is a company engaged in the industrial production of goods and products.

Produced Units

The total number of units manufactured during a specific period.

Raw Materials

Raw materials are the basic, unprocessed physical materials required for manufacturing products.