A company with significant amounts of accounts receivable experiences uncollectible accounts from time to time. If the company uses the direct write-off method, the effect of writing off an uncollectible receivable will be ________.
A) a reduction in net income
B) negligible on net income
C) an increase in total assets
D) a generation of positive cash flow
A) a reduction in net income
You might also like to view...
You just won the lottery. You can take your $2 million in a lump sum today, or you can receive $220,000 per year over the next 12 years. Assuming a 6% interest rate, which would you prefer, ignoring tax considerations?
Research on work teams shows that clear project goals:
a. Help improve team performance and internal team processes b. Lead to greater conflict c. Are not possible without a team leader d. Are the same as the team’s mission statement
Eliza Reyes seeks to open a new apparel business. She has completed the first formal stage of the planning process-the opportunity analysis. In so doing, she has
A. developed a means to employ formal control systems. B. prepared for an initial public offering (IPO). C. described the service, assessed the opportunity, assessed herself, and specified the activities and resources (including funding) needed to move the idea to a viable business. D. created a business plan. E. performed a strengths/weaknesses/opportunities/threats (SWOT) analysis.
Normally to compute break even, the manufacturing firm will use ________ and the retail firm
will use ________. A) sales dollars; sales dollars B) discrete units; sales dollars C) sales dollars; discrete units D) discrete units; discrete units