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pair of difficult questions (for me, anyway)

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#1 chedster



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Posted 13 December 2014 - 05:15 PM

I'm looking for help with the following questions. Only one answer can be entered for each, so if more than one are correct, I guess they're looking for the best one. Thanks in advance.
1)  A customer files for bankruptcy. What would the impact on the company be?
A - Accounts receivables and sales decline
B - Accounts receivables and retained earnings decline
C - Accounts receivables decline and operating expenses rise
D - Accounts receivables decline, costs rise
2)  Company X switches to straight line depreciation from accelerated. As a result...
A - Net income rises
B - Net income declines
C - Cash flow rises
D - Cash flow declines