Using the Direct Write-Off Method, the Effect on the Accounting

question 1

Multiple Choice

Using the direct write-off method, the effect on the accounting equation of writing off a debtor's account as a bad debt is:

• A) decrease in the asset bank, decrease in the asset debtors.
• B) no effect.
• C) decrease in the asset debtors, increase in the liability provision for doubtful debts.
• D) decrease in the asset debtors, decrease in equity.

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Definitions:

Social Learning

The process of deriving attitudes from family, peer groups, religious organizations, and culture.

Cognitive Moral Development

The process of moving through stages of maturity with regard to making ethical decisions.

Peer Groups

A group of individuals, often of similar age, background, or social status, who associate with each other and may influence each other's attitudes, behaviors, and beliefs.

Persuasion

The action or process of convincing someone to do or believe something through reasoning or argument.