Which of the Following Is Not an Accurate Description of Allowance

question 110

Multiple Choice

Which of the following is not an accurate description of allowance for doubtful accounts?

• A)contra account.
• B)statement of financial position account.
• C)income statement account.
• D)usually has a credit balance.

---

Definitions:

Tax Loss Carryovers

A provision that allows a taxpayer to use a net operating loss in one year to offset taxable income in future years.

CCA Class

Capital Cost Allowance (CCA) Class refers to categories used in taxation to determine the depreciation rate that can be claimed for tax purposes on assets, depending on their nature and use in a business.

Break-Even Lease Payment

The payment amount at which the lessee neither profits nor loses money over the term of the lease.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.