Which of the Following Accounts Is Not a Contra-revenue Account

If the company lends money or has a savings account the money earned through interest is recorded as non-operating revenue. Further Reading The Best.

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This is income generated through renting out business premises or equipment.

. Sales returns and allowances are recorded in a separate contra-revenue account. Sales returns and allowances are rarely disclosed in published financial statements. The following statements regarding gross profit are true except.

Sales returns and allowances are closed to the Income Summary account. A debit balance is normal and expected for the following accounts. Therefore a credit balance in Cash indicates a negative amount likely caused by writing checks for more than the amount of.

For example a debit balance in the Cash account indicates a positive amount of cash. Contra-revenue is a negative number covering unsold inventory or unpaid invoices. There is no relationship between sales returns and.

Asset accounts such as Cash Accounts Receivable Inventory Prepaid Expenses Buildings Equipment etc.

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