A Company Collects an Account Receivable Previously Written Off A)Option a
B)Option B
C)Option C
D)Option D

question 100

Multiple Choice

A company collects an account receivable previously written off.Indicate how this transaction would affect the following five financial statement items:
$\begin{array}{llllll}&&& \text { Stockholders' } \\&\text { Assets } &\text { Liabilities } &\underline{\text { Equity }}& \underline{\text { Revenues }} &\underline{\text { Expenses }}\\\text { a. } & \text { Increase } & \text { Decrease } & \text { Increase } & \text { Decrease } & \text { No effect } \\\text { b. } & \text { Increase } & \text { No effect } & \text { Increase } & \text { Increase } & \text { Decrease } \\\text { c. } & \text { Increase } & \text { No effect } & \text { Increase } & \text { Increase } & \text { No effect } \\\text { d. } & \text { No effect } & \text { No effect } & \text { No effect } & \text { No effect } & \text { No effect }\\\end{array}$

• A)Option a
• B)Option b
• C)Option c
• D)Option d

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Definitions:

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, holding all else constant, will at some point yield lower per-unit returns.

Dramatic Yields

Significant increases in productivity, often used in the context of agricultural output resulting from new technologies or methods.

Pesticides

Chemicals used to kill or manage the population of pests, including insects, weeds, and fungi, that threaten agricultural production and public health.

Intercropping

The agricultural practice of growing two or more crops in proximity to promote mutual benefits such as pest control and improved productivity.