ABC has decided that a customer owing them $200 is not going to pay them. What is the impact of writing off this worthless account on the financial statements? Group of answer choices Total assets go down. Net income goes down Net income goes up. No effect on total assets or net income
ABC has decided that a customer owing them $200 is not going to pay them. What is the impact of writing off this worthless account on the financial statements? Group of answer choices Total assets go down. Net income goes down Net income goes up. No effect on total assets or net income
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter8: Business Organizations
Section: Chapter Questions
Problem 6AA
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Question
ABC has decided that a customer owing them $200 is not going to pay them. What is the impact of writing off this worthless account on the financial statements?
Group of answer choices
Total assets go down.
Net income goes down
Net income goes up.
No effect on total assets or net income
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