One example of a contra-revenue account is:
A)allowance for doubtful accounts
B)sales returns and allowances
C)accumulated depreciation
D)sales revenue

Question

Quizplus · Accepted Answer

Contra-revenue accounts are the accounts that reduce the overall revenue of a business. Sales returns and allowances fall under this category because they reflect the reduction in sales revenue due to returned goods or price adjustments offered to customers. Option A is an allowance account, and option C is an asset account that reflects the depreciation of an asset over time. Option D is a revenue account that reflects the income generated by a business from its primary activities.

One Example of a Contra-Revenue Account Is