Contra Asset Account
A contra asset account is used to balance or offset another account. When a debit is made to an asset account, the contra account will credit the correlating account. It is also used in adjusting accounts in accounting or book keeping. These websites have information on the topic: http://www.wisegeek.com/what-is-a-contra-account.htm and www.businessdictionary.com/definition/contra-account.html. Often times, you will find that depreciation is used that way.
Posted by Isisbey on 9/2/2009
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A Contra-Asset account will typically have a credit balance. The Contra-Asset accounts accumulate amounts that are reductions of Assets. The most common Contra-Asset accounts are: ... Accumulated Depreciation - as an asset is depreciated over its useful life, the amount of depreciation is recorded in the...
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contra account - definition of contra account - An account which offsets another account. A contra-asset account has a credit balance and offsets the debit balance of the corresponding asset. A... ... contra account in the news ... current ratio; equity; working capital; asset; EBITDA...
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Forum: Business, Finance and Economics Forums ... A contra asset account is a negative asset account. Examples of include a non-current asset like machinary that is depreciated, the depreciated amount is represented in the accounts as a contra asset.
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For example, if a company has Accounts Receivable of $50,000 but anticipates that it will collect only $48,500 due to some customers' financial problems, the company will report a credit balance of $1,500 in the contra asset account Allowance for Doubtful Accounts.
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Contra-Asset Account Account that accumulates a balance that is subtracted from another account, as accumulated depreciation is subtracted from the ... Business Dictionary: Contra-Asset Account...
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Financial Definition of Contra-asset account and related terms: An offset to an asset account that reduces the balance of the asset account. . . ... Definition of Contra-asset account...
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Accumulated depreciation account, 170040, is just a regular account. The only difference is that it normally has a contra-asset ... Discounts (contra-revenue)
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English term or phrase: contra-asset account ... A contra-asset account accumulates a balance that is subtracted from another account. Es gibt dann auf der anderen Seite auch ein "contra-liability account".
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Investopedia explains Contra Account; An example of a contra account would be accumulated amortization. This contra asset account credits the amortization account, offseting the debit position.
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cash account ... contra equity account ... contra owner's equity account...
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