During the Current Year, TechCom Concluded That a Customer's $4,400

question 122

Multiple Choice

During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on TechCom's current year net income and balance sheet assuming the allowance method is used to account for bad debts?

• A) No effect on net income or on total assets
• B) Decrease in net income; no effect on total assets
• C) Decrease in net income; decrease in total assets
• D) Increase in net income; no effect on total assets
• E) No effect on net income; decrease in total assets

Recognize examples of common biases and errors in judgment and decision-making.

Understand the principles and outcomes of the ultimatum game in behavioral economics.

Explain the concept of asymmetric information and how it leads to problems like moral hazard and adverse selection.

Identify and describe systematic behavioral mistakes such as overconfidence, availability bias, and brand loyalty despite evidence.

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Definitions:

Hawthorne Studies

A series of studies conducted in the early 20th century that examined how various factors in the workplace affected worker productivity, leading to insights in organizational psychology.

Human Resource Strategy

A long-term plan for managing and optimizing an organization's workforce in alignment with its overall goals.

Job Design

The process of defining how work will be performed and what tasks will be required in a given job to achieve efficiency, quality, and satisfaction for both the organization and the employee.

Job Expansion

The process of broadening the scope of tasks and responsibilities of a particular job to make it more engaging and less monotonous for the employee.