In the Direct Write-Off Method, Writing Off an Account Causes

question 42

Multiple Choice

In the direct write-off method, writing off an account causes:

• A) a decrease in expense and an increase in an asset.
• B) an increase in expense and a decrease in an asset.
• C) a decrease in the Allowance account and a decrease in expense.
• D) an increase in Accounts Receivable and a decrease to revenue.

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Definitions:

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The effort or activity directed toward the production or accomplishment of something.

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