Briefly describe the elements of a negative message that uses the direct approach
What will be an ideal response?
Answer: The opening should start with a clear statement of the bad news. The body should give the reasons for the bad news, and the closing should end with a positive statement aimed at maintaining a good relationship with the audience.
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Under the direct write-off method, which of the following is included in the entry to write off an uncollectible account?
A) a credit to the Allowance for Bad Debts B) a credit to the customer's Account Receivable C) a debit to Allowance for Uncollectible Accounts D) No entry is made to write off uncollectible accounts.
Because equityholders are the last to receive any distribution of assets as a result of bankruptcy proceedings, they expect ________
A) fixed dividend payments B) greater returns from their investment in the firm's stock C) all profits to be paid out in dividends D) warrants to be attached to the stock issue