BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Accumulated depreciation-Equipment
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Accumulated depreciation-Building
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Bad debt Expense
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Allowance for Bad Debts
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Detailed explanation-1: -What Are Examples of a Contra Asset Account? Key examples of contra asset accounts include allowance for doubtful accounts and accumulated depreciation. Allowance for doubtful accounts reduce accounts receivable, while accumulated deprecation is used to reduce the value of a fixed asset.
Detailed explanation-2: -Sales returns, sales allowance and sale discounts are different examples of contra revenue accounts. Contra accounts such as these have a debit balance and are deducted from the total amount of a company’s revenue.
Detailed explanation-3: -Contra asset accounts allow users to see how much of an asset was written off, its remaining useful life, and the value of the asset. Some of the most common contra assets include accumulated depreciation, allowance for doubtful accounts, and reserve for obsolete inventory.