A Company with Significant Amounts of Accounts Receivable Experiences Uncollectible

question 220

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) negligible on net income
• C) an increase in total assets
• D) a generation of positive cash flow

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Definitions:

Organization Levels

The hierarchical layering of an organization into different levels, typically including top management, middle management, and operational employees.

Filter Down

The process by which policies, decisions, or information move from higher levels of an organization to lower levels.

Technological Uncertainty

The state of ambiguity or unpredictability regarding technological development, adoption, and its impacts on markets and operations.

Operations Manager

A professional responsible for overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.