An Account Used with a Related Account to Bring About

question 22

Multiple Choice

An account used with a related account to bring about a decrease in the net amount of the two account balances is called a(n)

• A) contra-account.
• B) expense account.
• C) adjusting account.
• D) revenue account.

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Definitions:

Reverse Auction

A type of auction in which the roles of buyer and seller are reversed, with sellers competing to obtain business from the buyer by offering the lowest price for their goods or services.

Bid Prices

The highest price that a buyer is willing to pay for a good, security, or commodity in a trading context.

Reverse Auctions

A type of auction in which sellers bid to supply goods or services to a buyer, with the price decreasing in each bid.

Buyer-Initiated

Transactions or actions that are started or requested by the purchaser rather than the seller.