On October 17 of the Current Year,a Company Determined That

question 89

Multiple Choice

On October 17 of the current year,a company determined that a customer's account receivable was uncollectible and that the account should be written off.Assuming the allowance method is used to account for bad debts,what effect will this write-off have on the company's net income and total assets?

• A)Decrease in net income;no effect on total assets.
• B)No effect on 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.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often resulting in increased interconnectedness and interdependence.

Offshoring

The relocation of a business process or operation from one country to another, typically for lower costs or other strategic benefits.

Resource Markets

Markets where resources or inputs used to produce goods and services, such as labor, capital, and raw materials, are bought and sold.

Absolute Advantage

A situation where a country or entity can produce more of a good with the same amount of resources than other countries.