Choose the Word or Phrase in [ ] Which Will

question 151

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Almost all | Nearly 75 percent] of the banking institutions in the United States are federally insured.

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Definitions:

Contra-Asset Account

An asset account where its balance is a reduction of another asset account, typically used for accumulated depreciation.

Allowance for Doubtful Accounts

A contra-asset account reducing total accounts receivable to reflect the amount that is expected to be uncollectible.

Income Statement Approach

The income statement approach is a method for preparing financial statements, focusing on calculating net income by summarizing revenues and expenses.

Allowance Account

An account used in accounting to estimate the portion of accounts receivable that may not be collectible.