An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n):
A)Accrued expense.
B)Contra account.
C)Accrued revenue.
D)Intangible asset.
E)Adjunct account.

Question

Quizplus · Accepted Answer

A contra account is an account that is linked with another account and has an opposite normal balance. It is used to subtract from the balance of the related account. This helps to provide a more accurate representation of the true balance of the account. Examples of contra accounts include accumulated depreciation, allowance for doubtful accounts, and sales returns and allowances.

An Account Linked with Another Account That Has an Opposite