How does the year-end adjustment to recognize uncollectible accounts expense affect the elements of the financial statements?
A. Increase total liabilities and increase stockholders' equity.
B. Increase total assets and decrease stockholders' equity.
C. Decrease total assets and decrease stockholders' equity.
D. Decrease total liabilities and increase stockholders' equity.
Answer: C
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New innovations in agricultural products are as likely to come today from chemical and biotechnology companies as traditional food/seed firms. This is an example of:
a. market uncertainty. b. incremental innovation. c. preannouncing new products. d. competitive volatility. e. network externalities.
Chadwick Company's sales for Year 1 were $8,700,000. The ending balance of accounts receivable was $801,000 at the end of the year. During Year 1, Chadwick collected $8,400,000 on its accounts receivable. The accounts receivable turnover ratio for the year was 10.5.
Answer the following statement true (T) or false (F)
Permanently rejecting an investment project today may not be a wise decision primarily because:
A) the size of the firm will be less than it would be with the project. B) there are always errors in the estimation of NPVs. C) the management team may be replaced. D) the company is foregoing all future options. E) the firm may not have any other investment opportunities.
The development of promotion mix strategies, or simply promotional strategies, involves decisions about _____________________.
A. Elements in the promotion mix B. Acceptable ROI for the customer C. Price D. Product development E. All of these