Which of the Following Is Considered a Contra Account

The income statement account Sales Returns and Allowances is a contra revenue account that is associated with the revenue account Sales. Bon the balance sheet as an contra-asset.

Contra Account Definition Examples Accounting Journal Entries

All of the following are liabilities EXCEPT.

. In bookkeeping a contra asset account is an asset account in which the natural balance of the account will either be a zero or a credit negative balance. Asset accounts including Cash Accounts Receivable Inventory Investments Equipment and others. A contra asset account is a type of asset account where the account balance may either be a negative or zero balance.

Up to 25 cash back A accumulated depreciation accounts receivable C 4. Question 2 Sales Discounts Accumulated Deprecation Allowance for Uncollectible Accounts All of these are considered contra-2 et accounts Which of the following is NOT. Accumulated Depreciation is a contra asset account.

Contra Liability Account A contra liability account is a liability that carries a debit balance and decreases other liabilities on the balance sheet. This use of Sales Returns and Allowances instead of debiting Sales. This type of asset account is referred to as contra because normal asset accounts might include a debit or positive balance and contra asset accounts can include a credit or negative balance.

Dinterest revenue cost of goods sold. Asked Dec 24 2020 in Business by karinchako. 07-06 Account for the disposal of long-term assets.

Given a choice most companies would prefer to report a liability as long-term rather than current because. Spiceland - Chapter 07 57 9. Contra asset accounts are recorded with a credit balance that decreases the balance of an asset.

A Loan from bank. Contra accounts are essentially any account found within the accounting records of a corporation or other official entity that carries a balance that is intended to offset the balance of related account. Contra accounts must be reported for intangible assets in a manner similar to accumulated depreciation and property plant and equipment.

Contra revenue transactions are recorded in one or more contra revenue accounts which usually have a debit balance as opposed to the credit balance in the typical revenue account. Acost of goods sold accounts payable. A contra asset account is a type of counter account that is used to adjust the debit balance of the main asset account.

An example of this is a discount on bonds payable. It may cause the firm to appear less risky to investors and creditors. Contra Account is an opposite entry passed to offset the balances of related original account in the ledger and helps the organization to retrieve the original amount and the amount of decrease in the value thereby presenting the net balances of the account.

O Cost of Goods Sold. Contra asset accounts include allowance for doubtful accounts and the accumulated depreciation. It is a general ledger account with a purpose to have its balance to be the opposite of the original balance for that account.

Contra revenue is a deduction from gross revenue which results in net revenue. 35Accumulated depreciation is reported. Con the income statement as revenues.

Recently The Bon Appetite Café contracted and paid for a relatively expensive advertisement in Haute Cuisine magazine. Deferred Revenue Cost of Goods Sold Accumulated Depreciation Goodwill. There are three commonly used contra revenue accounts which are.

Adjusting Entries The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting. Contra Equity Account A contra equity account has a debit balance and decreases a standard equity account. Bnotes receivable owners investment.

Which of the following is considered a contra account. The account offsets the balance in the respective asset account that it is paired with on the balance sheet Balance Sheet The balance sheet is one of the three fundamental financial statements. Which of the following accounts is considered a contra account.

Productive assets that are physically used up or depleted are. Csales revenue cash paid for expenses. All of the following are contra revenue accounts except.

Generally the balance sheet accounts are permanent accounts except for the owners drawing account which is a balance sheet account and a temporary account. If the balance in this contra account is a debit of 3000 and the Sales account has the expected credit balance of 400000 the companys net sales are 397000. The Contra Revenue Account.

Definition of Contra Revenue Account. Accumulated depreciation is a contra-asset account. It is an account that offsets or reduced against an asset account on the balance sheet.

Adjusting Entries The ledger of Chopin Rental Agency on. Which of the following is considered a contra account. Answer to Solved which of the following is not considered a.

Commission paid will fall under which of the following classification of accounts. A contra revenue account allows a company to see the original amount sold and to also see the. A word slogan or symbol that distinctively identifies a company product or service is a.

The contra asset account is considered only in interaction with the main active account and the latter can only be an asset and the regulating contract account liabilities. Which of the following is a Contra account. A contra revenue account is a revenue account that is expected to have a debit balance instead of the usual credit balance.

In other words its expected balance is contrary toor opposite ofthe usual credit balance in a revenue account. Aon the balance sheet as a liability. A contra account is considered to be the flip side of the story with the opposite account and is often used as a means of demonstrating the relationship between various.

Examples of permanent accounts are. It is located in the long-term asset section of the balance sheet under the heading of property plant and equipment.

Contra Account Definition Example List Of Top 4 Types

Contra Account Definition Examples Accounting Journal Entries

The Antiscia Of A Point Is Considered To Be The Mirror Image Or Shadow Cast By Planet In One Sign Onto A Gemini And Cancer Libra And Pisces Taurus And Cancer