0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Which one of the fixed asset accounts will not have a related contra asset account?
land
Are Unearned Revenue is a contra asset account?
No. It's a liability account.
Is a contra account a debit or a credit?
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
Example of Contra-Asset Account?
Accumulated Depreciation
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Is delivery equipment a contra asset account?
No, it is not a contra asset account. By definition, a contra asset account is an account which typically carries a credit balance and is used to accumulate amounts that are reductions of assets. Two common contra asset accounts are Allowance for Uncollectible Accounts Receivable and Accumulated Depreciation. If the delivery equipment is owned by your company then it should be considered an asset.
Allowance for doubtful accounts is what type of account?
Asset Contra account to Accounts Receivable (Contra-Asset). Normal balance is credit.
Is a contra account a debit or credit account?
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
Which one of the fixed asset accounts will not have a related contra asset account?
land
Are Unearned Revenue is a contra asset account?
No. It's a liability account.
Is accumulated depreciation an owner's equity account?
No. It is a contra asset account
Is a contra account a debit or a credit?
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
What is an example of a contra asset account?
Accumulated Depreciation
Is accumulated depreciation a contra asset account?
Yes
Example of Contra-Asset Account?
Accumulated Depreciation
Why accumulated depreciation is recorded in the asset of balance sheet instead of recording in the liabilities side?
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
