Question

    Which of the following is a contra

    account?
    A Accumulated depreciation Correct Answer Incorrect Answer
    B Accounts receivable Correct Answer Incorrect Answer
    C Prepaid expenses Correct Answer Incorrect Answer
    D Goodwill Correct Answer Incorrect Answer

    Solution

    Explanation: A contra account is an account that is used to offset another account. Accumulated depreciation is a contra account to the asset account, as it reduces the value of the asset.

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