0
Contra assets are asset accounts with creditbalances. (A credit balance in an asset account is contrary-or contra-to an asset account's usual debit balance.) Examples of contra asset accounts include: * Allowance for Doubtful Accounts * Accumulated Depreciation-Land Improvements * Accumulated Depreciation-Buildings * Accumulated Depreciation-Equipment * Accumulated Depletion * Etc. source: http://www.accountingcoach.com/online-accounting-course/05Xpg01.html -- amir
What else can I help you with?
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.
What is the definition of offset accounting?
One that reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value, is an example of an offset account. Discount on note payable, which is a reduction of notes payable to derive the carrying value, is another example.
What is the definition of the nature of business operation?
Business operations is the harvesting of value from assets owned by a business, which can be either physical or intangible.
What is the definition of debenture?
an unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.
What Decreases assets during the period by purchasing the company's own stock?
When a company purchases its own stock, it decreases its assets because the cash or cash equivalents used for the buyback are reduced, reflecting a cash outflow. This transaction typically results in a decrease in total assets on the balance sheet, as the cash asset diminishes while treasury stock is recorded under shareholders' equity as a contra equity account, effectively reducing the company's equity. Consequently, the overall impact is a reduction in both assets and equity.
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.
Which one of the fixed assets accounts will not have a related contra asset account?
land
Can the definition of contra be not?
Contra normally means against (from Latin.) Un- is better for using to mean not (uneducated-not educated)
Does the debit side of Allowance for Bad Debts go down and its credit side goes up?
Correct. Allowance for Doubtful Accounts is a "Contra-Asset" which means it reduces your net assets on the balance sheet. While most assets increase with a debit and decrease with a credit, Contra-assets increase with credits and decrease with debits.
What is the Legal definition of All Assets Debenture?
what is an all assets debenture
What contra account is used when recording and reporting the effects of depreciation and why is it used?
The contra account that is used when recording and reporting the effects of depreciation is called amortization of assets. This account is used to reduce the dollar amount of the asset periodically over time to bring assets to current costs.
What is the definition of contra entry with an example?
Contra refers 'Opposite'. In double entry system when bank and cash transcations are occured with each as cash deposit/withdrawn.
Is treasury stock classified as an assets account?
Treasury Stock is shown in the Equity section of the Balance Sheet as a contra-account.
Definition of accounting equation?
Assets = Liabilities + Equity
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.
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.
Where can you find subscription receivable in the balance sheet?
Whether Subscription Receivable account should be presented as an current asset or a contra equity account is debatable. The US SEC requires it as a contra equity account.
