If a Company Is Overly Optimistic About Debt Collection,the Company

question 122

Multiple Choice

If a company is overly optimistic about debt collection,the company will understate bad debt expense and:

• A)overstate net income;and days to collect will decline.
• B)overstate net income;but days to collect will increase.
• C)understate net income;and days to collect will increase.
• D)understate net income;and days to collect will decline.

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Definitions:

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A period of major industrialization from the 18th to the 19th century that radically transformed society with technological advancements, changing the manual labor system into machine-based manufacturing.

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