Which of the Following Is Not True About the Allowance

question 105

Multiple Choice

Which of the following is not true about the Allowance for Doubtful Accounts?

• A) It is a contra asset account.
• B) It is a liability account.
• C) It is used instead of reducing accounts receivable directly.
• D) It is debited when uncollectible accounts are written off.
• E) It is credited when bad debts expense is estimated and recorded.

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Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of the relationship between two variables.

True Score

An individual’s actual score on a variable being measured, as opposed to the score the individual obtained on the measure itself.

Measurement Error

The degree to which a measurement deviates from the true score value.

Measure

A method or tool used for quantifying, assessing, or determining the level, quantity, or capacity of a variable or phenomenon.