Reference no: EM132823296

Problem 1: What does the term "net book value" mean?

Option 1: The beginning balance that the firm uses when it disposes of an asset or liability
Option 2: The ending balance of an asset or liability that is used for tax reporting purposes
Option 3: The ending balance of an asset or liability after deducting the ending balance of its related contra account(s)
Option 4: All of the above
Option 5: None of the above

Problem 2: What is the difference between Bad Debt Expense and Receivable Write-off?

Option 1: Bad Debt Expense reduces Accounts Receivable and Receivable Write-off reduces NI
Option 2: Bad Debt Expense reduces NI and Receivable Write-off raises NI
Option 3: Bad Debt Expense reduces the allowance account and Receivable Write-off does not change it
Option 4: Bad Debt Expense raises the allowance account and Receivable Write-off reduces it
Option 5: There is no difference