Which of the Following Is a Correct Statement

question 107

Multiple Choice

Which of the following is a correct statement?

• A) The Sales Discounts account is a contra-asset account.
• B) The Sales Returns & Allowances account is a contra-revenue account.

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Definitions:

Categorical Grants

Funding from the federal government to state or local governments for specific purposes and subject to detailed conditions.

New Federalism

A political philosophy of devolution, or the transfer of certain powers from the United States federal government back to the states, initiated in the 1970s.

Unfunded Mandates

Legal requirements or conditions for federal programs that are imposed by Congress on state and local governments without providing federal funding to cover the costs.

Home Rule

Home rule refers to the power granted to political subdivisions by the state to govern themselves with minimal state interference.