A balance sheet account in the financial statements that offsets a related asset account. Contra asset accounts are subtracted from a related asset account since asset accounts have debit balances while contra assets have credit balances. For instance, the contra asset account "Allowance for Doubtful Accounts" is deducted from the asset "Accounts Receivable" to arrive at a net amount which is referred to as net or book value.
Related information about contra asset account:
- contra asset account definition | AccountingCoach.com
An asset account which is expected to have a credit balance (which is contrary to the normal debit balance of an asset account.
- What is a contra asset account? | AccountingCoach.com Q&A
A contra asset account is an asset account where the balance will be either a credit balance or a zero balance. (A debit balance in a contra asset account will.
- What is contra asset account? definition and meaning
Definition of contra asset account: A balance sheet account in the financial statements that offsets a related asset account. Contra asset accounts are subtracted ...
- About Contra Asset Accounts
The first contra asset account is the accumulated depreciation account. It is associated with an asset account and is used to 'adjust' that account. Increases in ...
- Contra Account Definition | Investopedia
This sort of contra asset account would credit the amortization account in order to offset the debit position to give a more accurate indication of the actual balance ...
- What Is a Contra Asset Account? | eHow.com
What Is a Contra Asset Account?. In double-entry accounting, each type of account--asset, liability, revenue, expense, and owner's equity--has a normal balance ...
- Contra Asset Account - wikiCFO
Jun 8, 2011 ... When examining the term “contra asset account,” one need look no farther than the root of contra than to get a vague grasp of the definition.
- Accounting 101 – Contra Asset GL Accounts | Suite101
Jan 4, 2010 ... Learn the meaning of a contra asset account and it's affect on the financial statements. Discover how contra accounts apply to accounts ...