2 Responses to Contra Asset Account

  1. Josie March 23, 2015 at 6:31 pm #

    Do contra assets go in when calculating total assets on a balance sheet, or when calculating debt-to-asset ratios?

    • Olivia Durr April 20, 2015 at 11:06 am #

      Josie, great question! The total assets include your current, long-term, and contra assets combined. Therefore, contra assets are included in your total. Since they are included in your total, contra assets DO, in fact, impact your debt-to-asset ratio as well. Let me know if that makes sense & if you have any other questions!

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