[The following information applies to the questions displayed below.]On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During Year 2, Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74,550. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.Which of the following describes the effects of Kincaid's entry to recognize the write-off of the uncollectible accounts?
A. Decrease assets and stockholders' equity.
B. Does not affect assets or stockholders' equity.
C. Increase assets and stockholders' equity.
D. Increase assets and decrease stockholders' equity.
Answer: B
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Which of the following is NOT true of inventory management?
A. Inventory management is a data-driven approach to making intelligent cost and customer service driven decisions. B. The goal, in most cases, is to generate revenue by minimizing stock-outs while keeping costs at a reasonable level. c. If Jimmy became unavailable all of a sudden, the business has no inventory management system. d. Smaller-sized operations are especially vulnerable to inventory risks.
Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company. Campbell's sold one of its:
A. strategic business units (SBUs) B. strategic alliances C. action programs D. transactional units E. synergistic divisions
Onshore outsourcing occurs when contracting an outsourcing arrangement with a company in a nearby country. Often this country will share a border with the native country.
Answer the following statement true (T) or false (F)
The balance column in a ledger account is:
A) An account entered on the balance sheet. B) A column for showing the balance of the account after each entry is posted. C) Another name for the dividends account. D) An account used to record the transfers of assets from a business to its owner(s). E) A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.