Multiple Choice
If a company is overly optimistic about debt collection, the company will understate bad debt expense and:
A) overstate net income; and days to collect will fall.
B) overstate net income; but days to collect will rise.
C) understate net income; and days to collect will rise.
D) understate net income; and days to collect will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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