The Allowance for Uncollectible Accounts Is a Contra-Asset Account

question 86

True/False

The Allowance for Uncollectible Accounts is a contra-asset account.

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Definitions:

AASB 15

An Australian Accounting Standard outlining the principles for recognizing revenue from contracts with customers, aiming to provide a robust framework for addressing revenue issues.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized and dictates how it should be measured and reported in the financial statements.

Disclosures

Information provided in financial statements and notes that gives insight into the basis of preparation and specific accounting policies, significant judgments, and potential risks.