At the Close of Its First Year of Operations, December

question 41

Multiple Choice

At the close of its first year of operations, December 31, 2010, Ming Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts.During 2010, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000.What should the company report on its statement of financial position at December 31, 2010, as accounts receivable before the allowance for doubtful accounts?

• A)$670,000
• B)$590,000
• C)$490,000
• D)$440,000

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Definitions:

Job Characteristics Model

A theory that describes how job design affects employee motivation, satisfaction, and performance by detailing five core job characteristics.

Autonomy

The capacity to make an informed, uncoerced decision; in the workplace, it often refers to the degree of independence in decision-making.

Empowerment

The process of giving individuals or groups the autonomy, resources, and ability to make decisions and take actions that affect their work or lives positively.

High Satisfaction

A state where expectations or needs are met or surpassed, often leading to contentment and positive feedback.