Asked by Leslie Rimmer on Mar 10, 2024
Verified
A contra-asset is:
A) a liability.
B) an asset with a debit balance.
C) an account with an opposite balance of a normal asset.
D) a revenue account.
Contra-Asset
An account that decreases the balance of its associated asset account through a contra entry.
- Comprehend the function and computation of contra-assets within the accounting cycle.
Verified Answer
MB
Morgan ButtigiegMar 10, 2024
Final Answer :
C
Explanation :
Contra-assets are accounts with a balance that is opposite to the normal balance of an asset. For example, accumulated depreciation is a contra-asset account that decreases the value of the asset it is associated with.
Learning Objectives
- Comprehend the function and computation of contra-assets within the accounting cycle.
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