An adjusting journal entry that includes an increase to a contra-asset account would include an increase in a(n):
A)related asset account.
B)liability account.
C)revenue account.
D)expense account.

Question

Quizplus · Accepted Answer

An adjusting journal entry that includes an increase to a contra-asset account (which is used to reduce the value of an asset) typically involves an increase in an expense account. This is because the adjustment usually reflects the consumption of an asset's value, such as through depreciation or amortization, which is recorded as an expense.

An Adjusting Journal Entry That Includes an Increase to a Contra-Asset