Answer:
The "normal" status of an account is due to the implicitly of the formula:
assets = liabilities + equity.
- The allowance for doubtful accounts is a contra account to accounts receivable,
- Accumulated depreciation is a reduction of fixed assets,
- And dividends are a reduction of equity
The accounts above are called "contra asset" accounts meaning that: is a negative asset account that offsets the asset account with which it is paired.
