Which of the following would be an example of a contra-asset?
A) Depreciation Expense
B) Residual Value
C) Accumulated Depreciation
D) Supplies

Question

Quizplus · Accepted Answer

Accumulated Depreciation is an example of a contra-asset because it has a credit balance and is subtracted from the related asset account, such as Equipment or Property, Plant and Equipment (PPE). This account reflects the total amount of depreciation expense recognized on the asset since it was acquired or placed in service.

Which of the Following Would Be an Example of a Contra-Asset