0
No. It is a contra asset account
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Is depreciation an example of an asset?
Usually depreciation is set up as a contra account to equipment. So in Assets you have an Equipment Account and a Accumulated Depreciation-Equipment Account showing up on the Balance Sheet in the Financial Statements. Keeping the accounting equation in mind, A=L+OE, credits made in the Accumulated Depreciation-Equipment Account are debited in a Depreciation Expense account which affects the Owners Equity side of the equation. This affects the Income Statement.
What is meant by countra account?
Contra account is reverse of actual account used to increase or decrease the actual account like depreciation account for actual asset account or drawings account for owners equity account etc.
Is an owners drawing part of the balance sheet?
Yes owners drawing account is contra account to owners equity and closed to owners equity account at the end of fiscal year.
How drawings account is contra equity account?
Drawing account is used to reduce the capital by the owners of the business from business that's why it is called the contra account for equity account.
What type of account is retained earnnings?
owners equity
Is sales an asset account?
Sales is generally considered "Revenue" or "Income" and therefore are an Owners Equity Account. Sales affect Retained Earnings and Retained Earnings affects Owners Equity.
Is The capital account is the owners liability account?
yes it is because it is used to summarize the owner's equity.
Does the owners capital account normally has a debit or credit balance?
Credit because it is an equity account
What is the account title used for owners equity?
The account title used for owner's equity can be simply "Owner's Equity." There may be sub accounts as part of the owner's equity part of the balance sheet, such as Retained Earnings.
What is owners savings?
An owner's savings account is also known as the owner's equity account. The owner's equity account keeps track of deposits and withdrawals to the account, and how much principal the owner has invested in the business.
Which type of account is capital?
Capital is an equity account and liability of business to payback as it is the amount invested by owners in business.
What is the detailed record of the changes in a particular asset or liability or owners equity called?
account
