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IIA

IIA-CFSA · Question #264

When a bank charges off a loan as a loss, it reduces an account called the"_____________"

The correct answer is C. Allowance of loans and lease losses. See the full explanation below for the reasoning.

Question

When a bank charges off a loan as a loss, it reduces an account called the”_____________”

Options

  • ALease payable
  • BLease Expense
  • CAllowance of loans and lease losses
  • DPrepaid loans and lease

How the community answered

(38 responses)
  • A
    8% (3)
  • B
    16% (6)
  • C
    74% (28)
  • D
    3% (1)

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