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:

Political Power

The ability or capacity to influence or control the behavior of people, institutions, or the course of events through authority, influence, or other means within a political context.

Deaths from War

The number of fatalities resulting from armed conflict, including both military personnel and civilians, during a specific time period.

Civilians

Individuals who are not members of the armed forces or the police; generally, the non-military population of a country.

Special Ops

Short for Special Operations, military actions conducted by specially designated, trained, and equipped units for specific and often confidential missions.