What type of transaction is the write-off of an uncollectible account using the allowance method? (asset source, asset use, asset exchange, or claims exchange)
What will be an ideal response?
Asset exchange
The write-off increases assets (decrease to allowance for doubtful accounts) and decreases assets (accounts receivable).
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According to Trompenaars, a culture's attitude toward the environment can range from
A. overwhelmed by aesthetics to dominating the environment. B. peaceful to warlike. C. control over the environment to harmony with it. D. submission to atheism.
Which of the following statements is false?
a. In order to maximize profits, salesmen's commissions should be based on contribution margin rather than sales price. b. Sales mix usually refers to manufacturing companies and retailers but not to service companies. c. The term "sales mix" refers to the sales of a certain product in relation to the company's total sales. d. Changing the advertising budget for specific products will affect the sales mix.
Which of the following best explains the parol evidence rule?
A) A court will accept evidence of any oral statement that changes or contradicts the terms of a written contract. B) A court will not accept evidence of any oral statement that changes or contradicts the terms of a written contract. C) A court will examine an oral statement made concerning the contract and decide which part to believe. D) A court will examine a statement made in negotiating the contract in determining misrepresentation. E) A court will only accept an oral statement as evidence if there are circumstantial guarantees of its trustworthiness.
Describe the sources of business risk
What will be an ideal response?