An Example of a Reclassification Entry Would Be an Entry

question 21

Multiple Choice

An example of a reclassification entry would be an entry to:

• A) increase the allowance for doubtful accounts when it was discovered that a customer had filed for bankruptcy.
• B) increase the income tax liability account when it was discovered that the tax rate would be higher than originally estimated.
• C) reduce inventory when the client failed to write down its obsolete raw materials.
• D) change material credit balances in accounts receivable accounts to accounts payable accounts.

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Definitions:

Recall Best

The tendency to remember and bring to mind the most significant or vivid memories more easily than others.

List

A sequence or collection of items, often enumerated or laid out in order, which can be written or verbal.

Mood-congruent Memory

The tendency of an individual to recall memories that are consistent with their current mood.

Teens

A demographic group that refers to individuals who are in the adolescent stage of development, typically between the ages of 13 and 19.