Sylvia's,Inc

question 93

Multiple Choice

Sylvia's,Inc.,decreases Allowance for Doubtful Accounts $700 at year-end.As a result:

• A)net assets decrease.
• B)net income is unchanged.
• C)net assets increase.
• D)net realizable value assets decreases.

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Definitions:

Straight-Line Method

A method of calculating depreciation for accounting purposes, where an asset's cost is reduced equally over its useful life.

Amortization

The gradual reduction of a debt over a specific period of time through regular payments, or the allocation of the cost of an intangible asset over its useful life.

Coupon Rate

The annual interest rate paid by a bond issuer to its bondholders, typically expressed as a percentage of the bond's face value.

Market Rate

The prevailing interest rate available in the marketplace for securities, loans, or deposits, often determined by supply and demand forces.