Which of the Following Does Not Reduce the Balance in Accounts

question 128

Multiple Choice

Which of the following does not reduce the balance in accounts receivable?

• A) Returns on credit sales.
• B) Collections from customers.
• C) Recognizing bad debts expense.
• D) Write-offs.

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Definitions:

Investment Opportunity

A potential venture or asset that presents the possibility for financial growth or returns.

ROI

Return on Investment, a financial ratio indicating the profitability of an investment relative to its cost.

Combined ROI

A metric that calculates the total return on investment from multiple investments or business units combined.

Residual Income

The amount of income that an individual or company has after all personal debts and expenses have been paid.