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:

AHA

American Heart Association, a non-profit organization in the United States that focuses on cardiovascular health education, research, and advocacy.

AMA

May refer to "Against Medical Advice" a situation where a patient chooses to leave a medical facility contrary to a health professional's advice, or "American Medical Association" a leading group of medical experts in the U.S.

Hypertension

A condition characterized by persistently high blood pressure that can lead to cardiovascular disease.

Dizziness

A feeling of unsteadiness or a sensation of spatial disorientation that can lead to a loss of balance.