Which of the following answers correctly states the effect of the reinstatement of the receivable on April 7,2013?
A) Option A
B) Option B
C) Option C
D) Option D

Question

Which of the following answers correctly states the effect of the reinstatement of the receivable on April 7,2013? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

The reinstatement of the receivable on April 7, 2013 increases both the accounts receivable balance and the net income for the year ended December 31, 2013. Option A is incorrect because it only reflects the increase in accounts receivable and does not include the impact on net income. Option B is incorrect because it incorrectly shows a decrease in net income instead of an increase. Option D is incorrect because it only shows the impact on net income and does not include the increase in accounts receivable.

Which of the Following Answers Correctly States the Effect of the Reinstatement