contra account

contra account definition - finance
An account that is paired with a separate, related account. The balance of the contra account is shown on the balance sheet. An accumulated depreciation account is an example of a contra-
asset account, which shows how much depreciation has been deducted against an asset. The remaining value of the asset shows up on the balance sheet.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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