Which Of The Following Would Not Be Classified As A Contra Account?
The correct options of this multiple choice questions (mcq) are A, E, I, J and K, as the Contra Accounts decrease the values of these relevant accounts which are sales revenue, purchases, accounts receivable, fixed assets (non-current assets) and inventory here. These contra accounts have opposite balances of their relevant accounts. For example, sales revenue has credit balance while its contra revenue accounts have debit balances, so the contra revenue accounts decrease the value of sales revenue account in the income statement. The option A shows Sales Revenue which is recorded in Income Statement for the period. The contra revenue accounts for sales revenue are Sales returns & allowances and discounts which reduce the balance of sales revenue in Income Statement. The option E is also correct option as it shows purchases which decreases when purchases returns & allowances and purchases discounts are occurred, which are contra expense accounts and deducted from purchases...