Under the Direct Write-Off Method of Uncollectible Accounts, If a Written

question 183

Multiple Choice

Under the direct write-off method of uncollectible accounts, if a written off account is later collected, the effect on the accounting equation is

• A) an increase in assets and an increase in liabilities
• B) an increase in liabilities and a decrease in stockholders' equity (expense)
• C) a decrease in assets and an increase in stockholders' equity (expense)
• D) a decrease in assets and a decrease in stockholders' equity (expense)

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Definitions:

Agreements

Contracts formed between two or more parties outlining terms and conditions regarding a specific matter or transaction.

Contracts

Legally binding agreements between two or more parties that outline terms and conditions for the exchange of services, goods, or obligations.

Equitable Remedy

A type of judicial relief that requires a party to act or refrain from acting in a certain way, often employed when monetary damages are insufficient for justice.

Imposed

Something that is enforced or applied authoritatively, often without the consent of those affected.