What Is the Type of Account and Normal Balance of Allowance

question 67

Multiple Choice

What is the type of account and normal balance of Allowance for Doubtful Accounts?

• A) Contra asset, credit
• B) Asset, debit
• C) Asset, credit
• D) Contra asset, debit

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Definitions:

Vicarious Liability

A legal principle where an individual or entity is held responsible for the actions or omissions of another person, typically in employment situations.

Scope of Employment

Refers to the range of activities and duties that an employee is expected to perform as part of their job.

Undisclosed Principal

A party in a contract whose identity is unknown to the third party at the time the contract is made.

Unauthorized Agent

An individual who acts on behalf of another party without being granted the legal or official authority to do so.