Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 48 - No. 20)
What is a contra-asset account and give an example of one?
An account that decreases the value of an asset; accumulated depreciation.
An account that increases the value of an asset; unearned revenue.
An account that represents a liability; accounts payable.
An account that represents an expense; salaries expense.
Explanation
A contra-asset account reduces the balance of an asset account. Accumulated depreciation is a contra-asset account.
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