Mar 17, 2016 · Chapter: 7 Question 1 0.2 out of 0.2 points Which of the following is considered a "contra" account? Selected Answer: Accumulated Depreciation. Answers: Unearned Revenue. Goodwill. Accumulated Depreciation. Cost of Goods Sold.
Feb 17, 2018 · AACSB: Analytic AICPA: Measurement Blooms: Analysis Difficulty: Medium Learning Objective: 07-06 Account for the disposal of long-term assets. Spiceland - Chapter 07 #57 9. Given a choice, most companies would prefer to report a liability as long-term rather than current because: A. It may cause the firm to appear less risky to investors and creditors.
Dec 10, 2013 · Accumulated depreciation is a contra-asset account. It is an account that offsets or reduced against an asset account on the balance sheet. 7. Recently, The Bon Appetite Café contracted and paid for a relatively expensive advertisement in Haute Cuisine magazine.
Which of the following is a contra account? Accumulated Depreciation is a contra asset account. It is located in the long-term asset section of the balance sheet under the heading of property, plant, and equipment.
In bookkeeping, a contra asset account is an asset account in which the natural balance of the account will either be a zero or a credit (negative) balance. The account offsets the balance in the respective asset account that it is paired with on the balance sheet.
The contra revenue accounts commonly used in small-business accounting include sales returns, sales allowance and sale discounts. A contra revenue account carries a debit balance and reduces the total amount of a company's revenue.
Contra Account. an account that is offset against another account. A contra account can be an asset with a credit balance or a liability with a debt balance. Book Value.
A revenues account with a debit balance instead of the usual credit balance. Examples include sales returns, sales allowances, and sales discounts.
In finance, a contra liability account is one that is debited for the explicit purpose of offsetting a credit to another liability account. Contra liabilities reduce liability accounts and carry a debit balance. In other words, the contra liability account is used to adjust the book value of an asset or liability.
Types of contra asset accountsAccumulated depreciation.Accumulated depletion.Obsolete inventory reserves.Allowance for doubtful accounts.Trade accounts receivable.Discount on notes receivable.Jul 23, 2021
Net Sales: When computing for the net sales, all sales returns and allowances and sales discounts are deducted from the gross sales. Since these accounts decreases the selling price, these should not be recorded as sales or revenue.
A contra account is an account created for clarification about any adjustments made to an existing item in ledger accounts. A basic example is an accumulated depreciation account. For recording the depreciation of fixed assets of a company, a separate account is created. This is a contra account.
An inventory reserve is a contra asset account on a company's balance sheet made in anticipation of inventory that will not be able to be sold. Every year, a company has an inventory that will not be able to be sold for various reasons.
A single-step income statement. reports sales revenues and other revenues and gains in the revenues section of the income statement. Both operating revenues (Net sales) and other revenues and gains are reported in the revenue section of a single-step income statement. Gross profit is not reported on a.
Gross profit is. sales revenue less cost of goods sold. A company determines the cost of goods sold each time a sale occurs in. Companies determine the cost of goods sold each time a sale occurs under a perpetual inventory system, but not in a periodic inventory system.