Contra asset accounts like Accumulated depreciation have normal debit balances.

Name: Contra asset accounts like Accumulated depreciation have normal debit balances.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Contra asset accounts have opposite normal balances to their related asset accounts. As asset accounts have normal debit balances, contra asset accounts will have normal credit balances. Therefore, Accumulated depreciation will have a normal credit balance, not a debit balance.

Contra Asset Accounts Like Accumulated Depreciation Have Normal Debit Balances