Asked by
Bryanna Fouser
on Oct 28, 2024
Verified
Which of the following is a contra account?
A) Unearned Rental Revenue
B) Sales Discounts Taken
C) Bad Debts Expense
D) Depreciation Expense
Contra Account
An account used in accounting to record reductions of related accounts, which has a balance opposite to the normal balance of the related account.
Unearned Rental Revenue
Income received from renters but not yet earned because the rental period has not occurred.
Bad Debts Expense
The cost recorded by businesses to cover accounts receivable that are not expected to be collected.
- Classify and identify differences between account types including prepaid expenses, contra accounts, and nominal accounts.
Verified Answer
EC
Learning Objectives
- Classify and identify differences between account types including prepaid expenses, contra accounts, and nominal accounts.