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:

Aversive Conditioning

is a form of behavioral training where a negative stimulus is paired with an undesirable behavior in order to reduce or eliminate that behavior.

Therapeutic Setting

An environment designed to facilitate healing and therapy, often characterized by safety, privacy, and comfort.

Exposure Therapies

Behavioral techniques, such as systematic desensitization, that treat anxieties by exposing people (in imagination or actuality) to the things they fear and avoid.

Mary Cover Jones

Known as the "mother of behavior therapy," she conducted pioneering work on desensitization and counterconditioning techniques.