WebA contra account is an account that companies use to reduce the value of a related account. It usually nets off against related accounts and provides an opposite effect to … WebQuestion: Accumulated depreciation account and allowance for doubtful accounts account are two examples of contra asset account. The normal balance of these two accounts would be: a A debit balance. b Similar to asset accounts. c NIL balance. d A credit. Accumulated depreciation account and allowance for doubtful accounts account are two ...

How to Set up Contra Accounts QuickBooks Canada

WebA second example of a contra asset account is Accumulated Depreciation. For instance, if a company has a plant asset such as Equipment with a debit balance of $92,000 and the account Accumulated Depreciation has a credit balance of $50,000, the carrying amount (or book value) of the equipment is $42,000. WebA contra asset account is an asset account where the account balance is a credit balance. It is described as "contra" because having a credit balance in an asset account is … the cycle best weapons

6 Types of Contra Asset Accounts and What They Mean

WebNov 30, 2024 · The contra asset account can also be combined with a current inventory account, allowing a financial analyst to determine the current market value of the … WebList of Contra Accounts with Examples. These accounts can be listed based on the respective asset, liability, or equity account to reduce their original balance. Below is the … WebNov 6, 2024 · Here are four of the balancing accounts that financial managers may use: 1. Contra asset account. In a contra asset account, the net balance is either zero or negative. Contrary to standard or regular asset accounts with a debit balance, these entries have a credit balance. Companies often refer to them as negative asset accounts. the cycle beta rewards