Which of the following is a contra account?
A) Premium on bonds payable
B) Unearned revenue
C) Patents
D) Accumulated depreciation

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra account that is used to reduce the value of the related asset account (e.g. Accumulated depreciation - Equipment is used to reduce the Equipment account). The other options are not contra accounts, but rather represent liabilities (Premium on bonds payable and Unearned revenue) and intangible assets (Patents).

Which of the Following Is a Contra Account