When a Company Writes Off an Account Receivable Using the Direct

question 3

Multiple Choice

When a company writes off an account receivable using the direct write-off method, the effect of this write-off on the financial statements is to

• A)increase the net realizable value of accounts receivable
• B)reduce total expenses
• C)reduce total assets
• D)increase working capital

---

Definitions:

Withhold Support

The act of intentionally refraining from providing assistance, endorsement, or resources that could aid someone or something.

Referent Power

An elusive power that is based on interpersonal attraction.

Individualistic

A trait or culture emphasizing the importance and value of the individual over the collective group.

Respected

Earning esteem or admiration from others due to qualities such as integrity, achievements, or fairness.