Which of the following is considered a contra-asset account?
A) Prepaid expenses.
B) Unearned revenue.
C) Accumulated depreciation.
D) Accounts receivable.

Question

Quizplus · Accepted Answer

Accumulated depreciation is considered a contra-asset account because it reduces the value of the asset (such as equipment or a building) over its useful life. Prepaid expenses and unearned revenue are both considered liability accounts, and accounts receivable is an asset account.

Which of the Following Is Considered a Contra-Asset Account