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