Which Is a Contra Account?

A contra account is an account used in a general ledger to reduce the value of a related account. They are useful to preserve the historical value in a main account while presenting a decrease or write-down in a separate contra account that nets to the current book value.

Which of the following accounts is a contra account?

The correct answer is option a.

The accumulated depreciation account is a contra asset account because it reduces the effective value of fixed assets of a firm.

Which is a contra account quizlet?

A contra-asset account, meaning that debits decrease the account, credits increase the account, and it has a normal credit balance. It is subtracted from the assets on the balance sheet. when the cash is paid out before the expense is actually owed.