Contra Accounts Have the Same Normal Balance as the Related

question 96

True/False

Contra accounts have the same normal balance as the related account and are added to the related account on the balance sheet.

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Definitions:

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.

Garnishment

Garnishment is a legal process by which a creditor can collect what a debtor owes by requiring a third party to turn over the debtor’s assets.

Judgment

A formal decision or determination made by a court regarding the rights and liabilities of the parties in a legal action.

Sheriff

An elected official in a county or independent city responsible for keeping peace and enforcing the law, often involved with serving legal documents and managing jails.