The Collection of an Account That Had Been Previously Written

question 24

Multiple Choice

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

• A)will increase profit in the period it is collected.
• B)will decrease profit in the period it is collected.
• C)requires a correcting entry for the period in which the account was written off.
• D)does not affect profit in the period it is collected.

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Definitions:

Tax

A mandatory fiscal fee or different form of levy placed on a taxpayer by a government entity to finance government expenditures and a range of public spending.

Inelasticities

A measure of the sensitivity, or lack thereof, of one variable to a change in another variable, typically used in economics to describe situations where changes in price have little to no effect on supply or demand.

Tax Burden

The total amount of taxes paid by individuals or businesses relative to their income, often analyzed to assess the impact of taxation on economic behavior.

Tax

A necessary financial obligation or other form of tax exacted from a taxpayer by a state institution with the aim of covering government expenses and various public financial needs.