WebDec 8, 2024 · An accumulated depreciation account is a type of contra asset account that is used for recording the amount of depreciation a fixed asset evolves through. For instance, a fixed asset such as machinery, a company building, office equipment, vehicles or even office furniture would be highlighted in an accumulated depreciation account. WebWhich is a contra account? A) AR B) Owners distributions C) Inventory D) Depreciation expense E) Wages payable This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. See Answer Question: Which is a contra account?

An accumulated depreciation account increases on the - Chegg

WebMay 12, 2024 · The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated … WebA contra account is an account used to offset the balance in a related account. When the main account is netted against the contra account, the contra account reduces the … co to finanse

Depreciation Expense vs. Accumulated Depreciation: What

WebA contra expense account is a general ledger expense account that will intentionally have a credit balance (instead of the debit balance that is typical for an expense account). In other words, this account's credit balance is contrary to (or opposite of) the usual debit balance for an expense account. Another description of a contra expense ... WebDec 2, 2024 · A contra account will naturally have an associated account, and the two accounts will have an opposite but equal balance. Let’s take a look at the two main types of contra account: Accumulated Depreciation: this account type shows a reduction in value of a tangible asset (property, equipment) to reflect the asset’s wear and tear (the ... WebAccumulated Depreciation is a contra asset account with a credit balance that reduces the normal debit balance of Property, Plant and Equipment fixed assets in order to present … mafia money