What Type of Account Is an Allowance for Doubtful Accounts

question 26

Multiple Choice

What type of account is an Allowance for Doubtful Accounts?

• A) Asset
• B) Contra-asset
• C) Revenue
• D) Contra-revenue

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Definitions:

Raw Materials

Basic materials that are used in the production process as inputs for manufacturing finished goods.

Indirect Materials

Components or supplies used in the production process that cannot be directly traced to a finished product.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, excluding direct material and direct labor costs.

Raw Materials

The unprocessed materials used in manufacturing to produce goods, ranging from metals and plastics to food ingredients and textiles.