Contra account

contra account
An account with a balance that is the opposite of the normal balance. For example, Accumulated Depreciation is a contra asset account, because its credit balance is contra to the debit balance for an asset account.

contra account
reduction to the gross cost of an asset to arrive at its net cost; also calledvaluation allowance. For example, accumulated depreciation is a contra account to the original cost of a fixed asset to arrive at book value .

CONTRA ACCOUNT - 1. is the reduction to the gross cost of an asset to arrive at the net cost; also know...
CONTRA ASSET - an item that is entered on the asset side of an accounting ledger even though the item h...

Contra Account
ACCOUNT considered to be an offset to another account. Generally established to reduce the other account to amounts that can be realized or collected.

Contra Account. An asset account that normally has a credit balance. The contra account is used to offset a related account. The approach is used so that the regular asset account is shown at the original or undiminished value.

contra account
Accounts receivable due from debtors who also have accounts payable due to them from the borrower.
contra asset ...

Contra account - Refers to an account which role is to offset another account. i.e. If a purchase is returned the 'purchase returns' account is a contra account - it reduces the value of purchases. For sales it would be the 'sales returns account.

Contra Account
Debit Card
Financial Accounting Standards Board - FASB
Frozen Account
International Accounting Standards - IAS ...

Contra Account
An account that reduces the balance of an asset account, for example, on and FI's balance sheet the allowance for loan losses.
Contributory Pension Plan ...

Contra account
A contra account is one general ledger account that’s always reported on the financial statements with its “main” account; since the two accounts will have opposite balances, their net amount will result.

Contra Account
An account on the balance sheet of a corporation or entity that offsets the balance of a related and corresponding account.

A contra account that offsets revenue. It represents the amount of sales made that were later returned.
Related Terms:
Net sales ...

consistency principle The consistent use of an inventory costing method helps owners and creditors compare financial reports from one period to another.

contra account An account whose balance is a decrease to another account.

A contra account is an account that is subtracted from a related account.

Depreciation, amortization and depletion are recorded as expenses against a contra account. Contra accounts are used in bookkeeping to record asset and liability valuation changes.

This method was found to be inconvenient, and the next step was to keep one account of the transactions recording the creation of indebtedness and another account (called the contra account) of those transactions reducing or extinguishing it.

contra account The broker facilitating the opposite side of a transaction. For example, this... contra broker The broker on the buy side of an order to sell or on the sell side of an order to buy.

See also: Expense, Values, Sales Revenue, Stock split, Mergers