Which of the Following Is True of the Balance Sheet

question 150

Multiple Choice

Which of the following is true of the balance sheet presentation of the Allowance for Bad Debts?

• A)It is reported as a current liability.
• B)It is reported as an operating expense.
• C)It is reported as a separate,independent line item under current assets.
• D)It is shown as a contra account related to accounts receivable.

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Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.

Agency Law

The legal principles governing the relationship between an agent, who acts for another person (the principal), and the rights and obligations that arise from this relationship.

Business Law

A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

E-Sign

E-Sign, the Electronic Signatures in Global and National Commerce Act, is a federal law that facilitates the use of electronic records and signatures in interstate and foreign commerce.