A company accounts for possible bad debts using the allowance method. When an actual write-off occurs, what effect does it have on the accounting equation?

Question 36 options:

	Decrease assets and decreases stockholders' equity.
	No effect on the accounting equation.
	Decreases assets and decreases liabilities.
	Increase assets and increase stockholders' equity.

Question 37 (2 points)

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A company purchases equipment with cash. Which section of the Statement of Cash Flows would this transaction be presented?

Question 37 options:

	N/A (cash is not involved)
	Investing
	Operating
	Financing