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In intro accounting, half the battle is knowing the vocabulary! One important term is “normal balance”. When we say normal balance we are referring to whatever (debit or credit) will INCREASE that account’s balance. Saying we have a “contra” account (like “contra-asset”) just flips the normal balance side to the opposite (so a normal balance for a contra-asset is credit because the normal balance for an asset is debit). #accounting #study #unitok #fyp #foryou
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In intro accounting, half the battle is knowing the vocabulary! One important term is “normal balance”. When we say normal balance we are referring to whatever (debit or credit) will INCREASE that account’s balance. Saying we have a “contra” account (like “contra-asset”) just flips the normal balance side to the opposite (so a normal balance for a contra-asset is credit because the normal balance for an asset is debit). #accounting #study #unitok #fyp #foryou
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