Match the following terms with the appropriate definition.
-An account linked with another account and having an opposite normal balance.
A)Adjusting entry
B)Unadjusted trial balance
C)Prepaid expenses
D)Natural business year
E)Accrued expenses
F)Adjusted trial balance
G)Report form balance sheet
H)Accounting period
I)Profit margin
J)Contra account

Question

Quizplus · Accepted Answer

A contra account is an account that is linked with another account but has an opposite normal balance. It is used to reduce the value of the original account without directly altering its balance. Examples include accumulated depreciation (contra account) for equipment (original account) and allowance for doubtful accounts (contra account) for accounts receivable (original account).

Match the Following Terms with the Appropriate Definition