If You Add 2 Cups of a Solution to 5

question 52

Multiple Choice

If you add 2 cups of a solution to 5 cups of water, what is the ratio?

• A) 2:5
• B) 0.4
• C) 2/5
• D) 40%

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Definitions:

Allowance for Doubtful Accounts

A contra account that represents the estimated amount of accounts receivable which may not be collectible.

Adjusting Entry

An accounting record made to adjust revenues and expenses to match the accounting period they were incurred, ensuring compliance with the accrual basis of accounting.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable, acknowledging potential losses on credit sales.

Carrying Amount

The book value of assets and liabilities as reported on the balance sheet, after deducting any accumulated depreciation or amortization.