An example of a contra-asset account is:
A)Depreciation Expense.
B)Accumulated Depreciation.
C)Prepaid expenses.
D)Unearned revenue.

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra-asset account because it offsets the asset account for the amount of depreciation expense incurred over the life of the asset. This means that the net value of the asset is reduced by the amount of accumulated depreciation. Depreciation expense, prepaid expenses, and unearned revenue are not contra-asset accounts.

An Example of a Contra-Asset Account Is