When an Adjusting Entry Is Made in Anticipation of Some

question 133

Multiple Choice

When an adjusting entry is made in anticipation of some receivables being uncollectible,the adjustment:

• A)reduces both net income and net accounts receivable.
• B)reduces net income and increases liabilities.
• C)reduces net accounts receivable and increases liabilities.
• D)reduces net income and selling expenses.

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Definitions:

Claims

Statements or assertions that something is the case, typically without providing evidence or proof.

Explanations

Statements or accounts that make something clear by describing it in detail.

Purposes

The reasons for which something is done or created or for which something exists.

Sufficient Evidence

Adequate information or proof required to support a claim or conclusion.