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A Contra Account Is an Account Linked with Another Account;

question 85

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A contra account is an account linked with another account; it is added to that account to show the proper amount for the item recorded in the associated account.


Definitions:

Time-Weighted Return

A method of calculating investment returns that eliminates the effects of cash flows into and out of the portfolio, focusing solely on the investment's performance.

Dividend

Profits paid out to shareholders by a corporation, usually as a form of earnings distribution.

Information Ratio

A measure of portfolio returns above the returns of a benchmark, to the volatility of those returns.

Residual Standard Deviation

A measure of the amount of variance in a dataset that is not explained by the predictive variables in a regression model.

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