When a company writes off an account receivable using the direct write-off method, the effect of this write-off on the financial statements is to
A. increase the net realizable value of accounts receivable.
B. reduce total expenses.
C. reduce total assets.
D. increase working capital.
Answer: C
You might also like to view...
A major drawback of conjoint analysis is that it cannot be used to measure objective attributes such as estimated market share and profit
Indicate whether the statement is true or false
Ramon Ramos has withdrawn $750 from Ramos Repair Company's cash account to deposit in his personal account. How does this transaction affect Ramos Repair Company's accounting equation?
A) Increase Assets (Accounts Receivable) and decrease Assets (Cash) B) Decrease Assets (Cash) and decrease Owner's Equity (Owner's Withdrawal) C) Decrease Assets (Cash) and decrease Liabilities (Accounts Payable) D) Increase Assets (Cash) and decrease Owner's Equity (Owner's Withdrawal)
________ is a crime that involves the willful or malicious burning of a building
A) Larceny B) Arson C) Battery D) Embezzlement
List the financial institutions that serve business, both banking and nonbanking institutions, and discuss their features.
What will be an ideal response?