Buttercup Florist Uses the Allowance Method to Account for Uncollectible

question 34

Multiple Choice

Buttercup Florist uses the allowance method to account for uncollectible accounts. Unable to collect a $150 account from a customer, Buttercup determined it was uncollectible. Which of the following statements is correct regarding the effect of writing-off a receivable?

• A)The net realizable value of receivables and total assets increase.
• B)The net realizable value of receivables and total assets decrease.
• C)The net realizable value of receivables decreases, and total assets increase.
• D)The net realizable value of receivables and total assets remains unchanged.

Understand the principles and legal framework governing collective agreements and their duration.

Analyze the implications and legal standings regarding unfair labour practices in the unionization context.

Identify the areas controlled by employment standards legislation.

Recognize examples of unfair labour practices by employers.

---

Definitions:

Commercial Finance Companies

Financial institutions that provide loans to businesses, typically for equipment purchases or other capital needs, often secured by the assets being financed.

State-of-the-Art Equipment

The most advanced and modern tools or machinery available in a field or industry.

Factoring Accounts Receivable

The financial practice of selling a business's invoices to a third party to secure immediate cash flow.

SBA Loans

Loans backed by the Small Business Administration designed to help small businesses get started, expand, or recover.