An Example of a Contra-Asset Account Is

question 87

Multiple Choice

An example of a contra-asset account is:

• A) the loan and lease loss allowance.
• B) unearned income.
• C) buildings and equipment.
• D) revenue bonds.
• E) the provision for loan loss.

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Definitions:

Net Working Capital

The disparity between an organization's immediate assets and its short-term obligations.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at their fair market value.

Accounts Receivable

Funds that clients or customers owe to a business for products or services they have received but have not yet paid for.

Inventory Purchases

This term is related to the buying of goods and materials by a company that are intended to be sold in the course of business.