Which of the Following Statements Is True Concerning the Allowance

question 76

Multiple Choice

Which of the following statements is true concerning the allowance for doubtful accounts?

• A)The allowance for doubtful accounts is a contra-revenue account.
• B)The allowance for doubtful accounts has a normal debit balance.
• C)The allowance for doubtful accounts is not used in the direct write-off method.
• D)The allowance for doubtful accounts is reported on the Income Statement.

---

Definitions:

Canada Pension Plan

A mandatory public retirement pension plan in Canada, funded by employer and employee contributions, that provides income in retirement or in case of disability.

Pension Rights

Legal entitlements related to retirement benefits, including eligibility, amounts, and conditions for receiving pension.

Portable

Often used to describe technology or skills that can be easily transferred or utilized in different contexts or locations.

Flexible Benefit Programs

Employee benefit plans that allow individuals to choose from a range of options to create a benefits package tailored to their own needs and circumstances.