On October 17 of the Current Year,a Company Determined That

question 89

Multiple Choice

On October 17 of the current year,a company determined that a customer's account receivable was uncollectible and that the account should be written off.Assuming the allowance method is used to account for bad debts,what effect will this write-off have on the company's net income and total assets?

• A)Decrease in net income;no effect on total assets.
• B)No effect on net income;no effect on total assets.
• C)Decrease in net income;decrease in total assets.
• D)Increase in net income;no effect on total assets.
• E)No effect on net income;decrease in total assets.

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Definitions:

Fibrin-stabilizing Factor

An enzyme that crosslinks fibrin clots, stabilizing them in the process of coagulation.

Agglutination

The clumping of particles or cells, such as bacteria or red blood cells, in response to antigens or antibodies, often used in blood typing and in identifying or estimating the strength of immunities.

Erythrocytes

Red blood cells that are responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide as a waste product away from the tissues and to the lungs.

Clumping

The aggregation or coming together of particles or cells, often observed in blood cells in response to certain conditions or agents.