One example of a contra-asset is:
A)Sales Discount
B)Sales Returns and Allowances
C)Uncollectible Accounts Expense
D)None of the above are contra assets.

Question

Quizplus · Accepted Answer

Contra assets are accounts on a company's balance sheet that have a credit balance and reduce the total amount of the company's assets. The options provided (Sales Discount, Sales Returns and Allowances, and Uncollectible Accounts Expense) are not contra assets. Sales Discounts and Sales Returns and Allowances are contra revenue accounts, reducing the total revenue, and Uncollectible Accounts Expense is an expense account, not a contra asset. A common example of a contra asset account is the Allowance for Doubtful Accounts, which reduces the total amount of accounts receivable reported on the balance sheet.

One Example of a Contra-Asset Is