When Making a Collection,no Entry Was Recorded to Reinstate an Account

question 20

Multiple Choice

When making a collection,no entry was recorded to reinstate an account previously written off.The allowance method is being used.This error would cause:

• A)total assets to be overstated.
• B)total liabilities to be understated.
• C)net income to be understated.
• D)None of these is correct.

Identify and understand various sociological perspectives and theories.

Analyze the impact of group size and structure on group efficiency and productivity.

Understand the significance of authoritative figures and the concept of authority in sociological terms.

Describe the concept of bureaucracy and its implications in both organizations and everyday life.

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Definitions:

Dishonor

To refuse to accept or pay a draft or a promissory note when it is properly presented. An instrument is dishonored when presentment is properly made and acceptance or payment is refused or cannot be obtained within the prescribed time.

Handwriting

The act or practice of writing done with the hand, using instruments such as a pen or pencil, which can be unique to each individual.

Validity

Refers to the legal effectiveness and enforceability of a contract or legal document.

HDC Status

Refers to Holder in Due Course status, a term in the Uniform Commercial Code that represents a party who has acquired a negotiable instrument under certain conditions that provide protection from defenses and claims that could impair the right to enforce the instrument.