Allowance for Uncollectible Accounts Is

question 46

Multiple Choice

Allowance for Uncollectible Accounts is:

• A)An expense account.
• B)A contra asset account.
• C)A contra revenue account.
• D)A liability account.

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Definitions:

Debits

Accounting entries that increase asset or expense accounts, or decrease liability or equity accounts, on the left side of a general ledger.

Credits

Accounting entries that increase liability, revenue, or equity accounts and decrease asset or expense accounts.

Transaction

Refers to an agreement or exchange between two or more parties that results in the movement of money or resources.

Exchanges

Transactions where goods, services, or securities are traded between two parties without the use of cash.