Question
A contra account __________.
is a separate account that synchronizes with the original account to show the decrease in value
shows as an increase in the original account
is not required to be recorded because it is not an original account
is entered on the same side as the original account
is a separate account that synchronizes with the original account to show the decrease in value
shows as an increase in the original account
is not required to be recorded because it is not an original account
is entered on the same side as the original account
Answers
GPT-4o mini
A contra account **is a separate account that synchronizes with the original account to show the decrease in value**.
Contra accounts are used to reduce the balance of the related account, and they typically have a balance that is opposite to the normal balance of that account. For example, accumulated depreciation is a contra asset account that reduces the total value of fixed assets.
Contra accounts are used to reduce the balance of the related account, and they typically have a balance that is opposite to the normal balance of that account. For example, accumulated depreciation is a contra asset account that reduces the total value of fixed assets.