Account types Flashcards
1
Q
Asset
A
resources owned or rights to receive resources.
2
Q
Liability
A
obligations owed to creditors.
3
Q
contra-equity
A
amount deducted from the stockholders’ equity
4
Q
expense
A
cost of operations that a company incurs to generate revenue
5
Q
revenues
A
money generated from normal business operations, calculated as the average sales price times the number of units sold
6
Q
contra-revenue
A
deduction from the gross revenue reported by a business, which results in net revenue.
7
Q
contra-liability
A
account that is debited for the explicit purpose of offsetting a credit to another liability account
8
Q
equity
A
the financial representation of the ownership of a business
9
Q
contra-asset
A
asset account in which the natural balance of the account will either be a zero or a credit (negative) balance
