A 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 contrary to the normal or expected debit balance. (A debit balance in a contra asset account will violate theRead More →
A contra asset account is a type of asset account where the account balance may either be a negative or zero balance. This type of asset account is referred to as “contra” because normal asset accounts might include a debit, or positive, balance, and contra asset accounts can include aRead More →
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. Which accounts are contra? There are four keyRead More →