Double Entry Accounting (LOS 30.d - Schweser Example) Question

I’ve started FSA and it’s every bit as confusing as I’ve expected (I have zero background in accounting). I am hoping to make it through with the kind assistance in this board. Cheers :slight_smile: Why are office supplies not an Asset - and if it is, why does it erode owner’s equity when ‘Equipment’ doesn’t? In fact, how are office supplies different from equipment? Secondly, is there a logical method to differentiate Contra-Accounts and other accounts? I can (try to) memorise the examples at this point but I don’t think that is really the way to go in the long term. Furthermore, how do contra assets affect this double entry accounting?

asset - In business and accounting, an asset is defined as a probable future economic benefit obtained or controlled by a particular entity as a result of a past transaction or event. Since a box of paper clips or highlighters do not provide a probable future economic benefit, their costs should be expensed. This is unlike a building, or equipment.