Why Should an Accounts Receivable Be Re-Established If It Has

question 20

Multiple Choice

Why should an accounts receivable be re-established if it has previously been written-off but is later collected in full?

• A) So that the debits equal the credits.
• B) To restore the credit rating of the debtor.
• C) So that assets are not understated.
• D) So that expenses are not overstated.

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Definitions:

Cognitive Restructuring

A psychotherapeutic process of learning to identify and dispute irrational or maladaptive thoughts.

Destructive Thinking

Negative thought patterns that can be harmful to one's mental health, hindering personal growth or well-being.

Learned Behaviors

Behaviors that are acquired or modified through experience or adaptation in the environment.

Behavior Change

The process of altering or modifying actions, habits, or thoughts to improve health or reach personal goals.