A contra account offsets the balance of a corresponding account. Transactions made to contra accounts are presented on a company's financial statements under the related account. Contra accounts are ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...

How to make sense of those weird tax items. Of all the items on a balance sheet statement, I've found none more frustrating and obscure than the deferred tax items. I know what accounts receivable and ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...

IMGCAP(1)]In many businesses the accounting for accounts receivable utilizes the allowance method to provide a reasonable estimate of the net collectability of the firm’s trade receivables. Most ...