Most Accounting Policy Choices Affect Both the Income Statement and the Balance

question 30

Multiple Choice

Most accounting policy choices affect both the income statement and the balance sheet.Select the income statement account(s) that would be affected by a policy choice at the same time as the allowance for doubtful debts balance sheet account.

• A) revenue,bad debts expense
• B) cost of goods sold expense
• C) depreciation or amortisation expense
• D) various expense accounts.

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Definitions:

Corporations

Legal entities that are separate from their owners, with the ability to own property, sue or be sued, and engage in contracts and business activities.

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a national trade union center in the United States representing over 12 million active and retired workers.

Political Lobbying

The activity of influencing public officials and legislators to enact laws or policies that favor the interests of specific individuals or groups.

Change to Win

A federation of labor unions in the United States focused on union revitalization and strategic organizing as a method to increase worker representation.