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:

Oviducts

Tubes through which eggs travel from the ovaries to the uterus in female mammals; also known as fallopian tubes.

Fertilization

The union of a male gamete (sperm) and a female gamete (egg) to form a zygote, initiating the development of a new individual.

Ovarian Follicle

A fluid-filled sac within the ovary that contains a developing egg (oocyte) during a female's reproductive cycle.

Oviduct Cilia

Hair-like structures in the oviduct (fallopian tubes) that move the egg from the ovary towards the uterus and assist in the movement of sperm.