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A contra asset account has what type of balance? A) Debit B) Credit C) Contra D) All of the above

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Question added by Shamseer KM , HR Payroll Officer , Al Darwish Engineering W.L.L.
Date Posted: 2015/02/26
mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Contra asset account show credit balance 

Answer b

It reduce asset with its amount in balance sheet 

Like allowances for doubtful customers accounts it reduce accounts receivable when reporting balance sheet

 

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

The contra asset account has a credit balance. Answer is B.

Arshad Mehmood
by Arshad Mehmood , Lecturer + Controller Examination , SKANS School of Accountancy

normally

credit balance ..................................

 

Muhammad Sabith
by Muhammad Sabith , Accountant , SIMORA

Option  C : Credit

 it shows credit balance                                                    

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