An Account Linked with Another Account That Has an Opposite

question 7

Multiple Choice

An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n) :

• A) Intangible asset.
• B) Contra account.
• C) Accrued revenue.
• D) Accrued expense.
• E) Adjunct account.

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Definitions:

Budgeted Purchases

An estimate of the total value or quantity of goods a company plans to purchase over a specific period, typically part of the budgeting process.

Sales Forecast

Sales forecast is an estimate of the expected sales revenue for a particular period, based on historical data, market trends, and analysis.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.