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    PSMART Posts: 2, Reputation: 1
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    #1

    Nov 15, 2013, 07:46 AM
    Can a contra account be considered a temporary account
    Can a contra account be considered a temporary account
    PSMART's Avatar
    PSMART Posts: 2, Reputation: 1
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    #2

    Nov 15, 2013, 07:47 AM
    Can a contra account be considered a temporary account
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    Fidget1 Posts: 105, Reputation: 4
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    #3

    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.
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