Under the Allowance Method, When a Receivable That Had Been

question 115

Multiple Choice

Under the allowance method, when a receivable that had been previously written off is collected:

• A) Profit is increased.
• B) Net assets are increased.
• C) Profit and net assets are not affected.
• D) Net assets and profit are both increased.

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Definitions:

Information Processing Approach

A cognitive psychology theory that compares human thought processes to computer processing, focusing on how information is received, processed, stored, and retrieved.

Operant Conditioning

A method of teaching in which behavior is altered through the application of rewards or consequences.

B.F. Skinner's View

The perspective of psychologist B.F. Skinner that emphasizes the importance of reinforcement and punishment in shaping behavior, known as behaviorism.

Reinforcement

In behavioral psychology, a concept where a behavior is strengthened or increased by following it with a positive stimulus or removing a negative one.