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.

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Definitions:

Employee Discount

A benefit offered by some employers, allowing their employees to purchase the company's products or services at a reduced price.

Employee Services

Various benefits and services provided by employers to improve employee well-being and job satisfaction.

Employer Contributions

Payments made by an employer on behalf of their employees, typically into pension plans or health insurance.

Voluntary Benefit

Optional, employee-paid benefits offered by employers, allowing employees to tailor benefits packages to their needs.