Which of the Following Is True of the Balance Sheet

question 150

Multiple Choice

Which of the following is true of the balance sheet presentation of the Allowance for Bad Debts?

• A)It is reported as a current liability.
• B)It is reported as an operating expense.
• C)It is reported as a separate,independent line item under current assets.
• D)It is shown as a contra account related to accounts receivable.

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm or damage to another.

Legislation

The process of making or enacting laws; it also refers to the laws themselves that have been created through this process.

Unlimited Joint Liability

A legal obligation among partners that holds each personally responsible for the total debts of a partnership without limits.