A contra-asset is:
A)a liability.
B)an asset with a debit balance.
C)an account with an opposite balance of a normal asset.
D)an account that increases the asset.

Question

Quizplus · Accepted Answer

A contra-asset is an account that has an opposite balance of a normal asset, meaning it is used to reduce the balance of an asset account. For example, accumulated depreciation is a contra-asset account that reduces the balance of the asset account for property, plant, and equipment. It is not a liability (A), an asset with a debit balance (B), or an account that increases the asset (D).

A Contra-Asset Is