Asked by Shehroze Tariq on Jun 17, 2024
Verified
An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n) :
A) Accrued expense.
B) Contra account.
C) Accrued revenue.
D) Intangible asset.
E) Adjunct account.
Contra Account
An account used in an accounting system to offset a related account, commonly used to record depreciation, allowances, and discounts.
Normal Balance
The side of an account, either debit or credit, where increases to the account are recorded.
Accrued Expense
Expenses that have been incurred but not yet paid or documented in the financial statements through an accounting process.
- Uncover and detail the demand for adjusting entries and their implications for the accounting equation.
Verified Answer
M?
Muhittin ?ekerda?Jun 17, 2024
Final Answer :
B
Explanation :
A contra account is a type of account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account. It is used to show a reduction in the value of an asset or an increase in the liability.
Learning Objectives
- Uncover and detail the demand for adjusting entries and their implications for the accounting equation.