Which of the Following Statements Is False

question 96

Multiple Choice

Which of the following statements is false?

• A)The journal entry to record bad debt expense decreases current assets.
• B)The journal entry to record bad debt expense decreases retained earnings.
• C)The journal entry to write off an uncollectible account receivable decreases operating income.
• D)The journal entry to write off an uncollectible account receivable does not affect current assets.

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Definitions:

Informal

Pertaining to interactions or structures not governed by formal rules, procedures, or policies, often based on personal or casual connections.

Unofficial Communication System

A communication network that operates outside formal channels within an organization, often known as the "grapevine."

Eyeglasses

Optical devices consisting of lenses mounted in a frame that aid in correcting or assisting vision.

Superior

An individual with a higher rank or position who often has supervisory or managerial responsibilities over others.