An example of a contra - account would be Accumulated Depreciation. O O True False

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Answer 1

Answer #1

An example of a contra - account would be accumulated depreciation.

The given statement is true.

A contra account is an account which reduces the balance in some other account to find out net balances of that account.

Accumulated depreciation is subtracted from fixed asset to find out net fixed asset.

Other contra accounts are sales return and allowances, and sales discounts which are subtracted from sales to find out net sales.

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Answer 2

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