Control over cash disbursements is generally more effective when disbursements are made by the accounts payable subsidiary clerk. all bills are paid in cash. O payments are made by cheque or electronic funds transfer. all purchases are made on credit. All of the following are examples of a control activity except assignment of responsibility. segregation of duties. an extensive marketing plan. insurance on assets. If the amount of bad debts expense is understated at year end, then net income will be understated. Onet Accounts Receivable will be overstated. Allowance for Doubtful Accounts will be overstated. shareholders' equity will be understated. A receivable is recognized O only when payment has been received. regardless of collection risk. when a service is performed. when the sales effort is substantially complete. When an account is written off using the allowance method for uncollectible accounts, accounts receivable increases and the allowance account increases. is unchanged and the allowance account increases. decreases and the allowance account increases. decreases and the allowance account decreases