Asked by
Jiayu Huang
on Nov 15, 2024
Verified
A contra asset account is subtracted from a related asset account in the statement of financial position and has a normal credit balance.
Contra Asset Account
An account that is used to reduce the balance of a related asset account to reflect its adjusted carrying value.
Credit Balance
The amount that a company or individual owes to creditors; in accounting, it indicates a balance on the right side of a ledger for liability, revenue, or equity accounts.
- Determine the attributes and management methods for particular accounts including Accumulated Depreciation, Prepaid Expenses, and Liabilities.
Verified Answer
GL
Learning Objectives
- Determine the attributes and management methods for particular accounts including Accumulated Depreciation, Prepaid Expenses, and Liabilities.
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