During 2020, Olivier Corp

question 38

Multiple Choice

During 2020, Olivier Corp., which uses the allowance method of accounting for doubtful accounts, recorded bad debts expense of $ 25,000. As well, the corporation wrote off uncollectible accounts receivable of $ 9,000. As a result of these transactions, their cash flows from operating activities would be calculated (indirect method) by adjusting net income with a

• A) $ 25,000 increase.
• B) $ 9,000 increase.
• C) $ 16,000 increase.
• D) $ 34,000 decrease.

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Definitions:

Diaphragmatic Breathing

Respiration in which the abdomen moves out while the diaphragm descends on inspiration.

Rib Cage

The structure formed by the rib bones and connective tissue that encloses and protects the thoracic cavity and organs.

Inspiration

The process of pulling air into the lungs, also used to describe a powerful influence on someone's mind or creativity.

Baseline

An initial set of measurements or data used as a reference point for future comparison.