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what are valuation accounts?

Answer Posted / zia

Item offset against or added to the gross amount of an
account to arrive at a net balance. Examples are the
allowance account that is subtracted from trading
securities to reduce cost to market value, allowance for
uncollectible accounts that is netted against accounts
receivable, accumulated depreciation that is deducted from
the fixed asset, or bond premium that is added to bonds
payable.

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