The Net Effect of the Entries to Recognize the Collection

question 66

Multiple Choice

The net effect of the entries to recognize the collection of a previously written-off account under the allowance method will

• A) increase total assets and total equity.
• B) increase total equity only.
• C) decrease total assets.
• D) have no effect on total assets or total equity.

---

Definitions:

Last 20 Years

Refers to the most recent two decades, a common time frame for analyzing changes and trends in economic, social, or technological domains.

Disposable Income

Net income available to households after taxes and other deductions, used for spending or saving.

GDP

GDP represents the sum total of all monetary values of goods and services produced inside a nation's boundaries over a given time frame.

Trillion

A numerical value representing one thousand billion, or 10^12 in the United States and other countries using short scale numbering.