On the balance sheet, any account having a balance intended to be deducted from another related account balance for financial statement purposes is known as a(n)
A) expense account.
B) discount account.
C) contra account.
D) uncollectible account.

Question

Quizplus · Accepted Answer

A contra account is used to offset the balance of another related account on the balance sheet. It is intended to be subtracted from its related account balance for financial statement purposes.

On the Balance Sheet, Any Account Having a Balance Intended