An Account Linked with Another Account That Has an Opposite

question 99

Multiple Choice

An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n) :

• A)Accrued expense.
• B)Contra account.
• C)Accrued revenue.
• D)Intangible asset.
• E)Adjunct account.

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Definitions:

Shareholder

An individual or entity that owns one or more shares of stock in a corporation, thereby having a financial stake and certain rights within the company.

Corporation

A legal entity that is distinct and separate from its owners, which can own property, incur liabilities, and is subject to taxation.

Cumulative Voting

A voting system in corporate governance that allows shareholders to concentrate their votes on a single candidate, enhancing minority shareholders' representation.

Minority Shareholder

An investor or shareholder who owns less than 50% of a company's shares, holding lesser voting power and control over corporate decisions compared to majority shareholders.