1. A contra asset represents A. an account such as Allowance for Doubtful Accounts which reflects a decline in the net realizable value of accounts receivable. B. an account that is presented as a credit balance in the asset section of the balance sheet. C. an account such as Accumulated Depreciation. D. all of the above.
2. Under the allowance method of accounting for uncollectible accounts receivable, an actual write-off is recorded as A. a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. B. a debit to Accounts Receivable and a credit to Uncollectible Accounts Expense. C. a debit to Uncollectible Accounts Expense and a credit to Accounts Receivable. D. a debit to Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts.
3. Under the direct write-off method of accounting for uncollectible accounts receivable, an actual write-off is recorded as A. a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. B. a debit to Accounts Receivable and a credit to Uncollectible Accounts Expense. C. a debit to Uncollectible Accounts Expense and a credit to Accounts Receivable. D. a debit to Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts. OVER
4. When compared to the straight-line method of depreciation, the double-declining balance method of depreciation will result in A. higher depreciation expense and lower net income during the earlyyearsof an assets useful life but the same total amount of depreciation over the assets entire useful life. B. higher depreciation expense and lower net income throughout the assets entire useful life. C. lower depreciation expense and higher net income during the earlyyearsof an assets useful life but the same total amount of depreciation over the assets entire useful life. D. lower depreciation expense and higher net income during throughout the assets useful life.
5. Depreciation is the process by which

A. the decline in value of an operating asset such as a building is recorded in the income statement over its estimated useful life.

B. the cost of an operating asset such as a building is allocated to the income statement over its estimated useful life.