Which of the Following Accounts Would Not Be Considered a Reserve

question 55

Multiple Choice

Which of the following accounts would not be considered a reserve account?

• A) Allowance of Doubtful Accounts
• B) Estimated Warranty Liability
• C) Prepaid Expense
• D) Accumulated Depreciation

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, reflecting gains from trade.

Price Ceiling

A government-imposed limit on the maximum price that can be charged for a product or service.

Price Floor

A government-imposed minimum price charged for a commodity, intended to protect producers by ensuring prices do not fall below a certain level.

Consumer Surplus

The distinction in the total financial outlay consumers are prepared to make for a good or service and the outlay made.