PSMART
Nov 15, 2013, 07:46 AM
Can a contra account be considered a temporary account
PSMART
Nov 15, 2013, 07:47 AM
Can a contra account be considered a temporary account
Fidget1
Nov 17, 2013, 04:17 AM
Yes... and No. A contra account only exists for as long the account it is offsetting, so I suppose you could call it a temporary account. Two main examples of contra accounts are depreciation & provision for bad debts and so long as a business has fixed assets and debtors, it will need those two contra accounts, so it's arguable that they're not really temporary accounts.