Accumulated Depreciation has a normal credit balance. Explain why. In your explanation, discuss in which financial...
Accumulated Depreciation has a normal credit balance. Explain why. In your explanation, discuss in which financial statement and where this account should be disclosed, assuming you choose to disclose on the financial statement face rather than in the notes to the financial statements
Homework Answers
Normal balance of Accumulated Depreciation is credit and it has a credit balance because it is the sum or aggregate of all depreciation expense which has been charged against a fixed asset. With the passage of time the amount of accumulated depreciation goes on increasing as more depreciation is charged against the fixed assets, resulting in an lower book value. Since the balance of fixed assets is debit, therefore accumulated depreciation must have credit balance in order to properly offset the fixed assets.
Accumulated Depreciation is shown in Balance sheet .Amount of accumulated depreciation should be deducted from the cost of fixed assets in order to arrive at the figure of net fixed assets in the balance sheet.
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Accumulated Depreciation has a normal credit balance. Explain
why. In your explanation, discuss in which financial...
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What kind of account is Accumulated Depreciation? What is the normal balance to the account? Why is this account used when we depreciate fixed assets like Building, Equipment, etc?
Which of the following statements about the Accumulated depreciation account is (are) correct? (Check all that...
Which of the following statements about the Accumulated depreciation account is (are) correct? (Check all that apply.) Accumulated depreciation is an expense account. The Accumulated depreciation account allows the original cost of the asset to remain in the plant asset account. Accumulated depreciation is a contra account. Accumulated depreciation is added to its plant asset on the income statement. Accumulated depreciation is subtracted from its plant asset on the balance sheet. Accumulated depreciation accumulates the total depreciation taken on an asset since its purchase.Explain what unearned...
tion For the account "Accumulated Depreciation", identify each of the following in the order presented: equation...
tion For the account "Accumulated Depreciation", identify each of the following in the order presented: equation classification (asset, expense, dividends, liability, paid in capital, retained earnings, revenue) financial statement on which it is reported (income statement, retained earnings, balance sheet) normal balance (debit or credit) Please use the exact spelling from above. Your answer must be in the order presented above(equation classification, financial statement, normal balance) with the three parts separated by a comma. Do not put parenthesis.
If the Cash account has a credit balance, which of the following statements is true? 1...
If the Cash account has a credit balance, which of the following
statements is true?
1
An error has occurred and must be corrected before financial
statements can be prepared.
2
Debit postings exceed the credit postings for the accounting
period.
3
The account needs to be analyzed to determine the reason for the
credit balance.
4
This is the normal balance for cash.
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After reviewing the three financial statements (balance sheet, income statement, and statement of cash flows), discuss...
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Note: Use a negative sign with your accumulated depreciation answer. Beneish Corporation Balance Sheet December 31...
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Which of the following statements about the Accumulated depreciation account is (are) correct? (Check all that apply.) Accumulated depreciation is an expense account. The Accumulated depreciation account allows the original cost of the asset to remain in the plant asset account. Accumulated depreciation is a contra account. Accumulated depreciation is added to its plant asset on the income statement. Accumulated depreciation is subtracted from its plant asset on the balance sheet. Accumulated depreciation accumulates the total depreciation taken on an asset since its purchase.Explain what unearned...
tion For the account "Accumulated Depreciation", identify each of the following in the order presented: equation classification (asset, expense, dividends, liability, paid in capital, retained earnings, revenue) financial statement on which it is reported (income statement, retained earnings, balance sheet) normal balance (debit or credit) Please use the exact spelling from above. Your answer must be in the order presented above(equation classification, financial statement, normal balance) with the three parts separated by a comma. Do not put parenthesis.
If the Cash account has a credit balance, which of the following
statements is true?
1
An error has occurred and must be corrected before financial
statements can be prepared.
2
Debit postings exceed the credit postings for the accounting
period.
3
The account needs to be analyzed to determine the reason for the
credit balance.
4
This is the normal balance for cash.
Part VIII: Identifying Account Balances Account Name Balance Type of Account Financial Statement Normal Balance (debit/credit) 8,500 12 500 Asser Balance Sheet Dehir a) Accounts Payable b) Accounts Receivable c) Beginning Balance Retained Earnings d) Cash c) Common Stock f) Dividends g) Equipment h) Land i) Notes Payable j) Prepaid Rent k) Salaries Expense 1) Service Revenue m) Supplies n) Supplies Expense o) Utilities Expense 16,500 25,000 12.000 45,000 32,000 12.000 1.200 Expense Income Statement Debir 50,000 125,000 1.800 4,000...
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