CONTRA ACCOUNT Definition

Bookmark and Share

CONTRA ACCOUNT is a. the reduction to the gross cost of an asset to arrive at the net cost; also known as a valuation allowance; e.g., accumulated depreciation is a contra account to the original cost of a fixed asset to arrive at the book value; or, b. reduction of a liability to arrive at its carrying value; e.g., bond discount, which is a reduction of bonds payable.

Learn new Accounting Terms

SEC is the Securities and Exchange Commission.

TENDER is to offer a product for sale at a specified price. A tender is issued usually in response to a specific request from a potential purchaser, e.g. government procurement.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.