What are the effects on the accounting equation when a company makes the adjustment to record bad debt expense using the allowance method?
a. Assets and owners' equity increase.
b. Assets and owners' equity decrease.
c. Assets increase and owners' equity decreases.
d. Assets decrease and owners' equity increases.
b
You might also like to view...
Which of the following is a type of marketing advantage?
A) product line advantage B) marketing expenses C) variable costs D) operating expenses E) service quality
Focus groups:
A. consist of 20 to 30 potential customers. B. should be led by the entrepreneur. C. discuss information in a formal and standardized procedure. D. are an informal method of gathering market information.
In an activity-based costing system, direct materials used would typically be classified as a unit-level cost.
Answer the following statement true (T) or false (F)
Joan is diligent and, starting on her 19th Birthday, she deposits $1,000 in a bank account that pays an interest rate of 10%. She continues to save for six more years culminating on her 25th birthday
After that birthday she stops saving but leaves her accumulated savings in a bank account for 40 years (to age 65). Roseanne is a partier and doesn't start saving until her 26th birthday, at which time she starts saving $1,000 a year until her 65th birthday. (Assume that Roseanne also earns a rate of 10%.) Who has more at age 65? A) Roseanne B) Joan C) They will have the same amount of money.