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kogti [31]
3 years ago
12

Which account would be most likely to have an account balance that is not normal?

Business
1 answer:
kakasveta [241]3 years ago
5 0

Answer:

The "normal" status of an account is due to the implicitly of the formula:

<em>assets = liabilities + equity.</em>

  1. The allowance for doubtful accounts is a contra account to accounts receivable,
  2. Accumulated depreciation is a reduction of fixed assets,
  3. And dividends are a reduction of equity

The accounts above are called "contra asset" accounts meaning that: is a negative asset account that offsets the asset account with which it is paired.

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