Asked by Woedem Malorku on May 04, 2024
Verified
A contra asset account is subtracted from a related account in the balance sheet.
Contra Asset Account
An account on the company's balance sheet that reduces the total amount of another account, typically used for accumulated depreciation.
- Clarify the role and types of contra asset accounts.
Verified Answer
MJ
Megan JohnsonMay 09, 2024
Final Answer :
True
Explanation :
A contra asset account has a credit balance and is used to reduce the balance of its related asset account. Therefore, it is subtracted from the asset account in the balance sheet.
Learning Objectives
- Clarify the role and types of contra asset accounts.