If an Account Is Collected After Having Been Previously Written

question 20

Multiple Choice

If an account is collected after having been previously written off

• A)the Allowance account should be debited.
• B)only the control account needs to be credited.
• C)both income statement and statement of financial position accounts will be affected.
• D)there will be both a debit and a credit to Accounts Receivable.

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Definitions:

Union Shop

A workplace where employees are not required to join the union prior to being hired, but must join soon after they start their employment.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, in a given time period.

Diminishing Returns

A principle stating that as investment in a single area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Labor Curve

A graphical representation showing the relationship between the quantity of labor supplied and the wage rate.