Fenchurch Corp

question 160

Multiple Choice

Fenchurch Corp.uses the direct write-off method to account for bad debts.What are the effects of the adjustment to record the write-off of a customer's account balance?

• A)Assets and liabilities decrease.
• B)Assets and stockholders' equity decrease.
• C)Stockholders' equity decrease and liabilities increase.
• D)No effect;assets increase and decrease by the same amount.

---

Definitions:

Physical Handicaps

Physical handicaps are impairments that substantially limit one or more of a person's major life activities, involving bodily functions or structures.

Intellectual Disability

This refers to a state marked by substantial impairments in intellectual capabilities and in adaptive behavior, including a wide array of daily social and practical skills.

Biological Factors

Physical or genetic traits that influence an individual's health, behavior, and development.

Mild Level

A low intensity or severity degree of a condition, situation, or phenomenon.