The Allowance for Doubtful Accounts Is an Example of A(n)

question 18

Multiple Choice

The allowance for doubtful accounts is an example of a(n)

• A) expense account.
• B) contra account.
• C) adjunct account.
• D) control account.

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Definitions:

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.

Petty Cash Fund

A nominal sum of cash reserved for quick payments of assorted trivial expenses.

Replenishing

Refers to the process of adding stock or supplies to bring quantities back up to predetermined levels.

Debit To Cash

An accounting entry that increases the cash balance in a company's books, reflecting an influx of money.