Which of the Following Double Entries Will Result in Decreases

question 33

Multiple Choice

Which of the following double entries will result in decreases in expense accounts?
Please select all that apply.

• A) Debit trade payables, Credit purchases (double entry to record purchase returns made to suppliers).
• B) Debit prepayments, Credit rent expense (double entry to record rent paid in advance).
• C) Debit cash, Credit irrecoverable debts (double entry to record cash recovered from an insolvent debtor that was previously charged as an expense).
• D) Debit allowance for receivables expense account, Credit allowance for receivables (double entry to record an increase in the allowance for receivables).

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Definitions:

Sensitivity Charts

Visual tools that display how changes in input variables affect the output of a model, commonly used in decision analysis.

Cumulative Net Profit

The total amount of profit or loss made over a given period after all expenses are taken into account.

Probability

The quantification of the chance that an event happens, indicated by a numerical range from 0 to 1.

Cumulative Net Profit

The total net profit earned over a specified period, after all expenses have been subtracted from revenues.