In the Direct Write-Off Method,writing Off an Account Causes

question 107

Multiple Choice

In the direct write-off method,writing off an account causes:

• A)an increase in expense.
• B)an increase in Accounts Receivable.
• C)a decrease in the Allowance account.
• D)an increase in Liabilities.

---

Definitions:

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, reflecting a company's spending or gains from such assets.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of an entity.

Operations

Refers to the ongoing activities of a business that are involved in the production and distribution of products or services.