When an Adjusting Entry Is Made in Anticipation of Some

question 98

Multiple Choice

When an adjusting entry is made in anticipation of some receivables being uncollectible the adjustment reduces:

• A)both net income and net accounts receivable.
• B)net income and increases liabilities.
• C)net accounts receivable and increases liabilities.
• D)net income and selling expenses.

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Definitions:

Technological Advance

The introduction of new technologies or the improvement of existing technologies, leading to better products, services, or ways of doing things.

Process Innovation

The introduction of new or significantly improved production or delivery methods, enhancing efficiency and effectiveness.

Product Innovation

This involves creating new products or significant improvements in the existing products to meet consumer needs or open new markets.

R&D Expenditures

Investments in research and development, aimed at innovating and improving products or processes.