Which One of the Following Is an Accurate Description of the Allowance

question 4

Multiple Choice

Which one of the following is an accurate description of the Allowance for Doubtful Accounts?

• A)Contra Account
• B)Liability Account
• C)Revenue Account
• D)Expense Account

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Definitions:

Corporate Officers

High-ranking executives who are charged with managing the operations and ensuring the compliance of a corporation.

Day-to-Day Operations

The regular, routine activities necessary for an organization or business to function effectively on a daily basis.

Corporation

A legal entity created under state law, recognized as separate from its owners, with its own rights, privileges, and liabilities.

Alien Corporation

A corporation formed in another country but doing business in the United States.