Which of the following is a contra account?
A) Depreciation Expense
B) Accumulated Depreciation
C) Unearned Revenue
D) Book Value

Question

Quizplus · Accepted Answer

Accumulated Depreciation is a contra account because it is subtracted from the asset it relates to (such as Property, Plant and Equipment) on the balance sheet, to show the net amount of the asset. This is because an asset's value depreciates (decreases) over time, so Accumulated Depreciation represents the total amount of the asset's depreciation that has been recorded to date, and reduces the asset's carrying value.

Which of the Following Is a Contra Account