A Cork Floats on the Surface of an Incompressible Liquid

question 53

Multiple Choice

A cork floats on the surface of an incompressible liquid in a container exposed to atmospheric pressure.The container is then sealed and the air above the liquid is evacuated.The cork:

• A)sinks slightly
• B)rises slightly
• C)floats at the same height
• D)bobs up and down about its old position
• E)behaves erratically

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Definitions:

Bad Debt Expense

This represents the estimate of non-collectible accounts receivable that occurs in a given period, reflecting potential losses due to credit sales.

Credit Sales

Sales transactions where the payment is delayed as opposed to immediate cash payment, generating accounts receivable.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Allowance for Doubtful Accounts

A contra asset account that represents an estimate of the amount of accounts receivable that may not be collectible.