Sandy Corporation uses the allowance method of accounting for uncollectible accounts. During 2014, Sandy had charged $80,000 to Bad Debt Expense, and wrote off accounts receivable of $90,000 as uncollectible. What was the amount of the decrease in working capital as a result of these entries?
a. $0
b. $90,000
c. $80,000
d. $10,000
C
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When people seek information to support their point of view and discount data that do not, they are subject to ______ bias. For example, Joe uses the fact that his commute is now shorter to confirm his belief that there are fewer cars on the road. However, Joe is not accounting for the fact that he recently took over the graveyard shift, and that traffic is always lighter at night and in the wee hours of the morning.
A. blind B. overconfidence C. confirmation D. representativeness E. framing
What is the best strategy if you encounter a bipolar question in an interview?
a. Provide honest and confident answers. b. Ignore the question. c. Redirect the question. d. Ask for clarification before answering.
Which of the following is most likely the largest expense of a bank?
a. Income taxes b. Occupancy expense c. Salaries d. Interest on loans e. Interest on deposits
Identify which of the following statements is false.
A. An S election is filed by the corporation by using Form 2553 on or before the due date (without regard to any extensions) for the corporate tax return for the tax year in question. B. An S corporation must file a tax return for any year in which the S corporation is in existence. C. The IRS can grant extensions of time of filing shareholder consents to the S election. D. The election form can be signed by a person authorized to sign the S corporation tax return.