Fenchurch Corp uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?
a. Assets and liabilities decrease.
b. Assets and owners' equity decrease.
c. Owners' equity decrease and liabilities increase.
d. No effect; assets increase and decrease by the same amount.
b
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Strategic fit means there is a good match of a target market to the firm's culture and resource capabilities.
Answer the following statement true (T) or false (F)
Similar to a corporation, all owners of a limited liability company (LLC):
A. have restricted debts. B. are called stockholders. C. are exempted from federal and state income taxes. D. have the right to establish the company's mission.
Velma borrows $110,000 from Watershed Bank to buy a home. If she fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is
A. a short sale. B. forbearance. C. foreclosure. D. the equitable right of redemption.
Mona and Nero want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by
A. a mutual agreement to rescind. B. an accord and satisfaction. C. a novation. D. an alteration of the original contract.