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A Contra Account Has Two Characteristics: (1)a Contra Account Is

question 16

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A contra account has two characteristics: (1)a contra account is paired with a companion account,and (2)a contra account's normal balance is the same as that of the companion account.


Definitions:

Operating Assets

Assets directly involved in the manufacturing or sale of products or services in the normal course of business.

Return on Investment

A measure of the profitability of an investment, calculated as the net profit of the investment divided by the initial cost.

Controllable Fixed Costs

Expenses that can be managed or influenced by decisions made by a company's management, such as advertising expenditures.

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue.

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