Assuming a Company Uses the Allowance Method, the Entry to Recognize

question 88

Multiple Choice

Assuming a company uses the allowance method, the entry to recognize the write-off of the specific uncollectible accounts will act to:

• A) Increase total assets and total equity
• B) Increase total assets and decrease total equity
• C) Decrease total assets and total equity
• D) Not affect total assets or total equity

---

Definitions:

Risk Management

The process of identifying, assessing, and mitigating risks to minimize their impact on an organization, particularly relevant in healthcare to improve patient safety.

Urinary Catheter

A tube inserted into the bladder to provide a continuous flow of urine when a patient is unable to urinate naturally.

Intravenous Line

A medical tubing inserted into a vein to deliver fluids, medications, or nutrients directly into the bloodstream.

Restraints

Devices or methods utilized to restrict a person's freedom of movement or access to their body, often used in medical or safety contexts to prevent harm.