Which of the Following Is a Contra Account

question 135

Multiple Choice

Which of the following is a contra account?

• A)Depreciation Expense
• B)Accumulated Depreciation
• C)Unearned Revenue
• D)Earned Revenue

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Definitions:

Collection Practices

The methods employed by a business or collection agency to obtain payment from debtors for bills or loans that are overdue.

Return on Common Stockholders' Equity

A financial ratio that measures the profitability of a company in generating profit from its shareholders' investments, specific to common stock.

Preferred Stock Dividends

Payments made to holders of preferred stock, often at a fixed rate, which are prioritized over dividends to common stockholders.

Inventory Turnover Rate

A metric that measures how quickly a company sells its inventory within a given period, calculated by dividing cost of goods sold by average inventory.