If an Account Is Collected After Having Been Previously Written

question 104

Multiple Choice

If an account is collected after having been previously written off,

• A) the allowance account should be debited.
• B) only the control account needs to be credited.
• C) both income statement and statement of financial position accounts will be affected.
• D) there will be both a debit and a credit to accounts receivable.

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Definitions:

Utility-Maximizing

A principle in economics whereby individuals seek to optimize their satisfaction or happiness through the consumption of goods and services.

Total Product Curve

A graphical representation showing how the quantity of output depends on the quantity of a variable input, holding all other inputs fixed.

Average Product

Calculating the efficiency of input by dividing the entire production by the volume of input.

Average Total Cost

The total cost of production divided by the quantity produced, also known as cost per unit.