Which of the Following Would Not Be Classified as a Contra

question 120

Multiple Choice

Which of the following would not be classified as a contra account?

• A) Inventory
• B) Sales Returns and Allowances
• C) Accumulated Depreciation
• D) Sales Discounts

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Definitions:

Resources

Assets, materials, and inputs used by an organization to produce goods or services.

Net Assets

The total value of all assets minus the total value of all liabilities, representing the ownership interest of shareholders in a company.

Stockholders' Claim

The rights of shareholders to a portion of a company's assets and profits, based on the number and type of shares they hold.

External Users

Individuals or entities outside of a company who utilize its financial statements for decision-making purposes, such as investors, creditors, and regulatory agencies.