Which of the following is a contra account?
A) Depreciation expense
B) Accumulated depreciation
C) Unearned revenue
D) Earned revenue

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra account because it is used to offset the balance of the asset it relates to (such as buildings, machinery, or equipment). As these assets are depreciated over time, their value is recorded as an expense in the income statement and the balance of the asset is reduced in the balance sheet, while the accumulated depreciation account is increased by the same amount. This means that the net balance of the asset and the accumulated depreciation account reflects the carrying amount of the asset at any given time.

Which of the Following Is a Contra Account