Archer Company Has Significant Amounts of Accounts Receivable,and Experiences Uncollectible

question 21

Multiple Choice

Archer Company has significant amounts of accounts receivable,and experiences uncollectible accounts from time to time.Archer uses the aging method to account for uncollectible accounts.When Archer Company writes off an uncollectible receivable,what is the effect of that single transaction?

• A) It will reduce net income.
• B) It will have no effect on net income.
• C) It will increase total assets of the company.
• D) It will generate negative cash flow.

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Definitions:

Catheterization Procedures

Medical interventions where a catheter is inserted into a body cavity, duct, or vessel to allow for drainage, injection of fluids, or access by surgical instruments.

Escherichia Coli

A type of bacteria that normally lives in the intestines of humans and animals; some strains can cause food poisoning.

Urinary Retention

A health issue where a person cannot fully or partially void their bladder.

Urinary Catheter

A tube inserted into the bladder to provide continuous urinary drainage.