What Type of Account Is Discount on Notes Payable

question 62

Multiple Choice

What type of account is Discount on Notes Payable?

• A)Contra liability
• B)Liability
• C)Contra asset
• D)Expense

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Definitions:

Power Generation

The process of producing electrical energy from other forms of energy, such as coal, natural gas, wind, or solar power.

Insulating Cost Allocation

The approach in assigning overhead and indirect costs to goods or services to avoid fluctuations in cost assignments.

Cost Allocation Method

A technique used to assign indirect costs to products, services, or departments based on relevant cost drivers.