Contra Asset Account

Definition: a Contra Asset Account is a type of asset account that offsets the balance of its associated paired asset account. For instance, depreciation is the contra asset account of equipment and building. Contra asset accounts' credit natural balance always maintains a zero or negative balance, contrary to its paired asset account. The term "contra" is used in relation to its associated normal asset account with debit natural balance because the contra asset account maintains a credit balance.

💡

Learn more about Contra Asset Accounts.

More on accounting and auditing: Accounting Cycle, Accounts Payable, Accounts Receivable, Accrued Revenue, Amortization, more on accounting and auditing...

MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.

Add MBA Brief to your desktop / iPad