Under the allowance method, when a company writes off an account receivable as an actual bad debt, it reduces total assets.
Answer the following statement true (T) or false (F)
False
Writing off an account receivable has no effect on total assets.
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The utility of any given test generally increases as the selection ratio gets higher.
Answer the following statement true (T) or false (F)
Which of the following most likely would not be considered as an inherent limitation of the effectiveness of a firm's internal control?
A. Management override. B. Collusion among employees. C. Mistakes in judgment. D. Incompatible duties.
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $25,000; beginning inventory of $2,500 and purchases of $17,500. What is the estimated amount of ending inventory at the end of the period?
A. $8,000 B. $15,000 C. $5,000 D. $10,000
Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. Which one of the following statements is true?
A. The self-sustaining nature of technology relates to the fact that the products are increasingly being produced with environment-friendly components. B. The negative effects of technology include concerns over privacy and intellectual property protection. C. Consumers' use of mobile devices to access the Internet has been declining over the last few years. D. Technological innovations are created only by private companies. E. We can expect the pace of technological change to slow down as more technology-oriented startups choose to go public and become more conservative with their business strategies.