Suppose a Customer Is Unable to Pay Its Account on Time,so

question 116

Multiple Choice

Suppose a customer is unable to pay its account on time,so the company accepts a six-month interest-bearing note receivable to replace the customer's account receivable.What effect will accepting the note receivable have on the company's financial statements at the time of acceptance?

• A)Total assets increase.
• B)Total assets decrease.
• C)No change in total assets.

---

Definitions:

Positive Reinforcement

A process in behavior analysis that involves the addition of a stimulus following a behavior that makes the behavior more likely to occur again in the future.

Autonomic Arousal

The activation of the autonomic nervous system, which can increase heart rate, blood pressure, and respiration rate, often as a response to stress or excitement.

Schachter and Singer

Psychologists who developed the two-factor theory of emotion, suggesting that emotion is based on physiological arousal and cognitive label.

Emotional Experience

The complex psychological state involving thoughts, behaviors, and physiological expressions felt during moments of affective reactions.