The Collection of an Account That Had Been Previously Written

question 17

Multiple Choice

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

• A) will increase income in the period it is collected.
• B) will decrease income 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 income in the period it is collected.

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Definitions:

Deflationary Measure

Economic policies or actions designed to reduce the overall level of prices within an economy, often to tackle inflation or to stabilize economic conditions.

Economic Expansion

The phase of the business cycle where economic activity is increasing, characterized by rising GDP, lower unemployment, and increased industrial production.

Activist Government

Describes a government that takes an active role in addressing social, economic, and political issues, often through interventionist policies and initiatives.

Limited Government

A political ideology advocating for minimal government intervention in the lives of citizens and economic activities, emphasizing individual liberties.