Which of the following statements is not correct?
A)The cost less the salvage value equals the depreciable base of a long-term asset.
B)Each adjustment for an accrued expense includes a credit to a liability account.
C)If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account.
D)Uncollectible Accounts Expense is a contra asset account.

Question

Quizplus · Accepted Answer

Uncollectible Accounts Expense is not a contra asset account; it is an expense account. Contra asset accounts have credit balances and are used to reduce the balance of the related asset account. Uncollectible Accounts Expense is used to record the expense associated with accounts receivable that are no longer expected to be collected.

Which of the Following Statements Is Not Correct