Sales Returns & Allowances and Sales Discounts are contra revenue accounts, but Freight out is not. You just studied 18 terms!.
What is a contra revenue account quizlet?
What are contra revenue accounts? -Debit balance, reduces revenue. -Examples:Sales returns and allowances, cash/credit card discounts.
Which of the following is an example of a contra revenue account quizlet?
The Sales Discounts account is an example of a contra revenue account. A sales allowance is recorded as a debit to Accounts Receivable and a credit to Sales Allowances. *A sales allowance is recorded as a debit to Sales Allowances and a credit to Accounts Receivable.
Which of the following is an example of a contra revenue account group of answer choices?
Sales Discount is anexample of a contra revenue account.
What is contra sales account?
A revenues account with a debit balance instead of the usual credit balance. Examples include sales returns, sales allowances, and sales discounts.
Which is a contra account quizlet?
A contra-asset account, meaning that debits decrease the account, credits increase the account, and it has a normal credit balance. It is subtracted from the assets on the balance sheet. when the cash is paid out before the expense is actually owed.
What is a contra asset account give two examples of such an 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.
Which of the following is a revenue account?
Revenue Accounts are those accounts that report income of the business and therefore have credit balances. Examples include Revenue from Sales, Revenue from Rental incomes, Revenue from Interest income, etc.
Is allowance for doubtful accounts a contra revenue?
The Allowance for Doubtful Accounts is directly related to the asset account entitled Accounts Receivable. The income statement account Sales Returns and Allowances is a contra revenue account that is associated with the revenue account Sales.
Which of the following is not considered in computing net purchases?
The correct option is (d) freight paid on goods shipped to customers.
What is considered contra revenue?
Contra revenue is a deduction from the gross revenue reported by a business, which results in net revenue. Contains the amount of sales discounts given to customers, which is usually a discount given in exchange for early payments by them.
Which of the following is contra account?
Which of the following is a contra account? Accumulated Depreciation is a contra asset account. It is located in the long-term asset section of the balance sheet under the heading of property, plant, and equipment.
What is contra account example?
contra account definition. An account with a balance that is the opposite of the normal balance. For example, Accumulated Depreciation is a contra asset account, because its credit balance is contra to the debit balance for an asset account. Another example is the owner’s drawing account.
How many contra revenue accounts are there?
As mentioned above, there are three common contra revenue accounts: sales returns, sales allowances and sale discounts. Sale Returns contra revenue accounts are useful in demonstrating the impact on net revenue of returns and refunds.
Is unearned revenue a contra account?
Unearned revenue, also known as deferred income or prepaid earnings, is not a contra revenue account with a debit balance presented on an income statement, but rather a liability with a credit balance reported on a balance sheet.
What are contra equity accounts?
A contra equity account is a stockholders’ equity account with a negative balance. This means that the account has a net debit balance. This account reduces the total amount of equity held by a business. Treasury stock (reflects the amount paid by a business to buy back shares from investors)May 5, 2017.
Which is a contra account chegg?
A contra account is an account created for clarification about any adjustments made to an existing item in ledger accounts. A basic example is an accumulated depreciation account. For recording the depreciation of fixed assets of a company, a separate account is created. This is a contra account.
Is depreciation expense a contra account?
The accumulated depreciation account is a contra asset account on a company’s balance sheet, meaning it has a credit balance. The amount of accumulated depreciation for an asset or group of assets will increase over time as depreciation expenses continue to be credited against the assets.
Is Deferred revenue an asset or liability?
Deferred revenue is a liability because it reflects revenue that has not been earned and represents products or services that are owed to a customer.
Which of the following accounts is a contra account to sales?
The contra revenue accounts commonly used in small-business accounting include sales returns, sales allowance and sale discounts. A contra revenue account carries a debit balance and reduces the total amount of a company’s revenue.
What are the types of revenue?
Revenue comes in various forms—sales revenue, rental revenue, dividend revenue, etc—and is made up of two important parts: the cost and the number of units sold of each product or service.
What are the types of revenue in economics?
Revenue Types : Total, Average and Marginal Revenue Total Revenue: The income earned by a seller or producer after selling the output is called the total revenue. Average Revenue: Average revenue refers to the revenue obtained by the seller by selling the per unit commodity. Marginal Revenue:.
What is revenue account in accounting?
A revenue account is an account with a credit balance. It includes all the revenue receipts also known as current receipts of the government. These receipts include tax revenues and other revenues of the government.
What are contra accounts give five examples of accounts with their corresponding contra accounts?
Types of contra asset accounts Accumulated depreciation. Accumulated depletion. Obsolete inventory reserves. Allowance for doubtful accounts. Trade accounts receivable. Discount on notes receivable.
What are the contra assets?
A contra asset is a negative asset account that offsets the asset account with which it is paired. The natural balance in a contra asset account is a credit balance, as opposed to the natural debit balance in all other asset accounts.
Is inventory a contra account?
What is a Contra Inventory Account? A contra inventory account is a general ledger account that is paired with the inventory account, and which contains a negative balance that represents a reserve for obsolete or damaged goods.
Which of the following is not included in computing the cost of goods sold?
COGS does not include general selling expenses, such as management salaries and advertising expenses. These costs will fall below the gross profit line under the selling, general and administrative (SG&A) expense. It includes expenses such as rent, advertising, marketing section.