The Allowance for Uncollectible Accounts Is a Contra-Asset Account

question 86

True/False

The Allowance for Uncollectible Accounts is a contra-asset account.

---

Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income or loss over a specific period of time.

Total Contribution Margin

The difference between sales revenue and variable costs, indicating the total amount available to cover fixed expenses and generate profit.

Contribution Format

An income statement format that highlights the variable costs incurred to produce goods, allowing for the analysis of contribution margin.

Unit Sales

The total quantity of an item or product sold by a company in a given period.