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45. When an uncollectible account is written off under the estimated bad debts method, it
Select one:
a. leaves total assets unchanged
b. increases working capital
c. decreases net income
d. increases the accounts receivable net realizable value
46. When pledging accounts receivable
Select one:
a. title to the receivables reverts to the lender
b. collection responsibility reverts to the lender
c. the pledges are usually done with recourse
d. the pledge arrangements become the new valuation methodology entered in the accounting records
47. Which of the following reconciling items would require an adjusting journal entry on the company’s books?
Select one:
a. cash on hand
b. outstanding checks
c. deposits in transit
d. Nonsufficient funds checks
48. When a company writes off an account receivable using the direct write-off method, the effect of this write-off on the financial statements is to
Select one:
a. reduce total assets
b. increase the net realizable value of accounts receivable
c. increase working capital
d. reduce total expenses
49. When accounts receivable are assigned, the risk of ownership
Select one:
a. and the title are retained by the borrowing company
b. is retained by the borrowing company, but the title is passed to the finance company
c. and title pass to the finance company
d. passes to the finance company, but the title is retained by the borrowing company
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