The Owner's Capital Account Decreases with ________

question 146

Multiple Choice

The owner's capital account decreases with ________.

• A) net income
• B) the purchase of long-term assets
• C) the owner's contributions
• D) the owner's withdrawals

---

Definitions:

Uncollectible Receivables

These are amounts due to a company from its customers that are considered unlikely to be collected.

Adjusting Entry

An accounting entry made at the end of an accounting period to record unrecognized income or expenses to ensure that the accounting records are accurate.

Allowance for Doubtful Accounts

A contra-account reducing accounts receivable on a balance sheet, reflecting the amount of receivables a company believes it will not collect.

Estimated Uncollectible

The anticipated portion of receivables that a company expects not to collect.