Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 35 - No. 9)
What does the term 'contra-asset' mean in accounting?
An asset that is not tangible.
An asset that will be converted to cash within one year.
An account that reduces the balance of another asset account.
An asset that depreciates over time.
Explanation
A contra-asset is an account that reduces the balance of another asset account, e.g. Accumulated Depreciation.
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