A contra asset account is an asset account where the account balance is expected to be a credit balance. It is described as “contra” because having a credit balance in an asset account is contrary …

What is a Contra Account? In bookkeeping, a contra asset account is an asset account in which the natural balance of the account will either be a zero or a credit (negative) balance. The account …

Guide to Contra Asset Account and its definition. Here, we explain it along with examples, list of accounts, advantages & disadvantages.

Aug 22, 2023 · A contra account is an asset account that is kept at either a negative or zero balance and is used on a balance sheet to offset the positive balance of a paired asset.

Dec 10, 2025 · A contra asset account is a specialized general ledger account that is directly linked to a specific primary asset account. This linkage means the contra account is designed to reduce the …

Jun 24, 2025 · What is a Contra Asset? A contra asset is a negative asset account that offsets the asset account with which it is paired. The purpose of a contra asset account is to store a reserve that …

Oct 7, 2025 · There are four main types of contra accounts: contra asset, contra liability, contra equity, and contra revenue. Each plays a different role in reducing or offsetting balances so financial …

Sep 5, 2025 · A contra account is a general ledger account used to reduce the value of a related account. Learn about the types of contra accounts and why they're important.

Learn what a contra asset account is in accounting with simple examples. Understand its purpose, types, and how it helps provide a clearer financial picture.

Mar 25, 2022 · A contra asset is a negative account used on a balance sheet to reduce the value of a related account. Learn how it can provide a clear picture of your business finances.