Which one of the following is not an accurate description of Allowance for Doubtful Accounts?
A)Contra account
B)Balance sheet account
C)Income statement account
D)Current asset account

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account which is used to reduce the value of accounts receivable on the balance sheet. It is not an income statement account as it does not reflect revenue or expenses. It is also not a current asset account as it represents an estimate of potential bad debts and not actual cash or assets.

Which One of the Following Is Not an Accurate Description