Which of the Following Accounts Would Not Be Considered a Reserve

question 20

Multiple Choice

Which of the following accounts would not be considered a reserve account?

• A) Allowance for Doubtful Accounts
• B) Estimated Warranty Liability
• C) Prepaid Expense
• D) Accumulated Depreciation

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Definitions:

Finished Goods Inventory

The stock of completed products available for sale at the end of an accounting period.

Manufacturing Company

A business entity that engages in the production of goods using labor, machines, tools, and chemical or biological processing.

Merchandising Company

A type of company that purchases goods at wholesale prices and resells them at retail prices, making a profit from the markup.

Managerial Accounting Information

Data provided for internal use by the management of a company to facilitate decision-making and business analysis.