Under the Allowance Method, the Entry to Reinstate an Account

question 79

Multiple Choice

Under the allowance method, the entry to reinstate an account previously written off:

• A)decreases net income and increases total assets.
• B)increases total assets.
• C)has no effect on net income or total assets.
• D)increases net income and increases total assets.

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Definitions:

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole; a dimension in which events occur in sequence.

Humanistic Approach

A psychological perspective that emphasizes individual potential and stresses the importance of growth and self-actualization.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow; it posits that human needs are arranged in a hierarchy, with physiological needs at the base, ascending to safety, love and belonging, esteem, and self-actualization needs.

Conditional Positive Regard

An attitude of acceptance and love from others that is contingent upon behaving in a way that is approved by them, as opposed to unconditional positive regard.