A contra account __________.

Question

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

Answer 1

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.