If an Account Is Collected After Having Been Previously Written

question 86

Multiple Choice

If an account is collected after having been previously written off

• A)the allowance account is debited.
• B)only the control account is credited.
• C)both statement of income and statement of financial position accounts are affected.
• D)there is both a debit and a credit to Accounts Receivable.

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Definitions:

Imperfect Information

A situation in which parties in a transaction have unequal or inadequate information, leading to market inefficiencies.

Total Employment

The total number of people employed in an economy at a given time, including both full-time and part-time workers.

Unemployed People

Individuals who are capable of working and actively seeking employment but are unable to find a job.

Unemployment Insurance

A government program that provides financial assistance to individuals who are unemployed through no fault of their own, offering temporary financial support while they look for new employment.