Answers » Categories » Accounting

Is a contra-asset in reality a liability?

1 Answer

Contra accounts are accounts that reduce or increase the value of the main asset or liability account.
The contra account is not an asset or liability in itself.

Contra-asset accounts are used to adjust the amount of the related asset account. Examples of contra asset accounts include:

- Allowance for Doubtful Accounts
- Accumulated Depreciation-Land Improvements
- Accumulated Depreciation-Buildings
- Accumulated Depreciation-Equipment
- Accumulated Depletion

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question