On November 2, 2016, Quaint General Store Concluded That a Customer's

question 61

Multiple Choice

On November 2, 2016, Quaint General Store concluded that a customer's $400 account receivable was uncollectible and that the account should be written off.What effect will this write-off have on Quaint's 2016 net income and balance sheet totals assuming the allowance method is used to account for bad debts?

• A) Decrease in net income; decrease in total assets
• B) Increase in net income; no effect on total assets
• C) No effect on net income; decrease in total assets
• D) No effect on net income; no effect on total assets

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Definitions:

Globalizing Operations

The process of expanding business operations across international borders, aiming for a global presence and market.

Individualism

A cultural orientation in which people belong to loose social frameworks and their primary concern is for themselves and their families.

Social Framework

The structure of societal norms and institutions that guide and govern the behavior of individuals within a community.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.