Odd-man out: Select the word that does not belong to the group.Select one:a.Insurance Expenseb.Doubtful Accountsc.Interest Expensed.Prepaid Rent Expense
Question
Odd-man out: Select the word that does not belong to the group.Select one:a.Insurance Expenseb.Doubtful Accountsc.Interest Expensed.Prepaid Rent Expense
Solution
The word that does not belong to the group is "b. Doubtful Accounts".
Here's why:
a. Insurance Expense, c. Interest Expense, and d. Prepaid Rent Expense are all types of expenses that a business may incur.
However, b. Doubtful Accounts is not an expense. It is a contra asset account that is used to create an allowance for doubtful accounts, which are accounts receivable that a company does not expect to actually collect. This is different from the other three options, which are all types of expenses. Therefore, "b. Doubt
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