Fenchurch Corp

question 150

Multiple Choice

Fenchurch Corp.uses the direct write-off method to account for bad debts.What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?

• A) Assets and liabilities decrease.
• B) Assets and owners' equity decrease.
• C) Owners' equity decrease and liabilities increase.
• D) No effect; assets increase and decrease by the same amount.

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Definitions:

Semantic Memory

A type of long-term memory involving the storage of general knowledge, facts, concepts, and meanings not tied to specific experiences.

Concepts

Mental representations or understandings of categories or classifications of objects, events, or people, based on shared properties or characteristics.

Events

Occurrences or happenings that take place in a specific time and place, often noteworthy.

Place

A specific point, area, or location that is defined by its physical and emotional significance to an individual or community.