Polo, Inc Uses the Allowance Method of Accounting for Bad Debts

question 1

Multiple Choice

Polo, Inc. uses the allowance method of accounting for bad debts. During July, Torey's account was written off as uncollectible. The write-off of Torey's account

• A)increases both the current and quick ratios.
• B)decreases the current ratio and has no effect on the quick ratio.
• C)has no effect on the current and quick ratios.
• D)increases the current ratio and has no effect on the quick ratio.

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Definitions:

Organizational Citizenship

The voluntary commitment of employees to go beyond their contractual tasks and roles, contributing to the overall effectiveness and culture of the organization.

Behavioral-Based

Approaches or strategies focused on understanding and influencing human behavior through observation and data.

Result-Based

An approach that focuses on achieving specific outcomes or results rather than the process used to achieve them.

Trait-Based

An approach focusing on specific, identifiable qualities or characteristics that can predict behavior and performance.