A debit balance in a contra asset account will violate the cost principle. Since a credit balance in an asset account is contrary to the normal or expected debit balance the account is referred to as a contra asset account. The most common contra asset account is Accumulated Depreciation..
Related posts to depreciation contra asset
In accountancy, depreciation refers to two aspects of the same concept: The decrease in value of assets fair value depreciation The allocation of the cost of assets .
Advanced Financial Accounting Data Virtual University 1 What Is a Contra Asset Account? The balance of contra asset accounts affects financial results..
Definition of contra asset account: A balance sheet account in the financial statements that offsets a related asset account. Contra asset accounts are .
A contra asset account is an asset account where the balance will be either a credit balance or a zero balance. A debit balance in a contra asset account will .