During the Current Year, Aqua Systems Determined That John Smith's

question 25

Multiple Choice

During the current year, Aqua Systems determined that John Smith's $2,600 account receivable was uncollectible and should be written off. Which of the following best describes the impact of this write off on the current year's income statement and balance sheet?

• A) decrease in net income and no effect on total assets
• B) decrease in net income and decrease in total assets
• C) no effect on net income and decrease in total assets
• D) no effect on net income and no effect on total assets

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Definitions:

Degraded Ecosystems

Ecosystems that have been damaged or impaired, often by human activities, resulting in reduced capacity to provide services and support life.

Beavers

Semi-aquatic rodents known for building dams, canals, and lodges, significantly impacting their surrounding environment and ecosystem.

Natural Ecosystems

Communities of living organisms in conjunction with the nonliving components of their environment, interacting as a system.