An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n):
A) Intangible asset.
B) Contra account.
C) Accrued revenue.
D) Accrued expense.
E) Adjunct account.

Question

Quizplus · Accepted Answer

A contra account is linked with another account but has an opposite normal balance and it is subtracted from the balance of the related account to reflect a net balance. Examples of contra accounts can be an allowance for doubtful accounts, accumulated depreciation, or discounts. Intangible assets, accrued revenue, accrued expenses, and adjunct accounts are different concepts that do not include the characteristic of being contra accounts.

An Account Linked with Another Account That Has an Opposite