A Company with Significant Amounts of Accounts Receivable,experiences Uncollectible Accounts

question 138

Multiple Choice

A company with significant amounts of accounts receivable,experiences uncollectible accounts from time to time.If the company uses the direct write-off method,the effect of writing off an uncollectible receivable will be ________.

• A)a reduction in net income
• B)nil on net income
• C)an increase in total assets
• D)a generation of positive cash flow

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Definitions:

Organization

An entity, such as a company, institution, or association, comprised of people and resources working towards common goals or objectives.

Encourage

To inspire with courage, spirit, or confidence; to stimulate by assistance or approval.

Indirect Approach

A communication strategy that involves conveying a message in a roundabout way rather than directly.

Routine Request

A standard or regular way of asking for something within a business or professional context.