A Firm Has Accounts Receivable of $100,000 and Allowance for Doubtful

question 40

Multiple Choice

A firm has accounts receivable of $100,000 and allowance for doubtful accounts of $15,000.How will this be reported on the financial statements?

• A)$85,000 asset
• B)$85,000 revenue
• C)$100,000 asset and $15,000 liability
• D)revenue of $100,000 and expense of $15,000

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Definitions:

Financial Stability

The condition of having a strong financial foundation, characterized by the ability to withstand economic fluctuations and meet financial obligations.

Strategic Leadership

The ability of influencing others to voluntarily make decisions that enhance the prospects for the organization's long-term success while maintaining long-term financial stability.

Maturity Stage

Phase in a product's lifecycle where growth slows down, and sales stabilize, often requiring strategies to maintain market share.

Growth Stage

A phase in the business life cycle where a company experiences rapid revenue and customer base expansion.