Which of the Following Is a Distinguishing Feature of a Contra

question 84

Multiple Choice

Which of the following is a distinguishing feature of a contra account?

• A)If a contra account has a credit balance,then its companion account will usually have a debit balance.
• B)If a contra account has a credit balance,then its companion account will usually have a credit balance.
• C)A contra account usually has a dollar balance larger than its companion account.
• D)Contra accounts are found only in the liability section of the balance sheet.
• E)Contra accounts do not follow generally accepted accounting principles,while their companion accounts do follow generally accepted accounting principles.