The accumulated depreciation account in the statement of financial position will be treated as a deduction from assets in the statement of financial position O in the asset account as a debit balance in the trial balance in the statement of profit or loss as a expense

The accumulated depreciation account in the statement of financial position will be treated as a deduction from assets in the statement of financial position O in the asset account as a debit balance in the trial balance in the statement of profit or loss as a expense

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter4: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 7QY: Accumulated Depreciation, Equipment is reported a. on the income statement as an expense. b. on the...

See similar textbooks

Related questions

Q: Preparation of adjusting entry for depreciation is supported by which principle/concept/assumption?…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: accounting treatment for depreciation expense in the balance sheet

A: Depreciation expense is the part of cost of fixed asset written off in each financial year. This is…

Q: xplain what are contra asset accounts, where they are on shown on the financial statements and give…

A: Contra Asset: A contra asset is, well, a contra asset. All assets, in general, have a debit balance,…

Q: The journal entry to record depreciation expense is: O A. debit the asset account, credit…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Which of the following is an expense in the current accounting period under accrual accounting?…

A: We know that under accrual basis of accounting, incomes and expenses are recorded as and when they…

Q: Match each term with the definition that best describes it. Accruals [ Choose ] [Choose An account…

A: Accruals - adjusting entries for either accrued revenue or accrued expense Contra-asset account -…

Q: Failure to record depreciation at the end of an accounting period results in a. Overstated expenses…

A: The business organizations are required to charge the depreciation expense on their assets so that…

Q: In a classified balance sheet, long-term assets used in the normal course of business are known as…

A: Classified BS (Balance Sheet): It is a Financial Statement that classifies every type of asset and…

Q: (a) Explain the purpose of the two accounts:Depreciation Expense and Accumulated Depreciation.(b)…

A: (a) Explain the purpose of Depreciation Expense account, and Accumulated Depreciation account.…

Q: _Accounting concept is in valuation of fixed assets

A: Option A. Historical cost concept says fixes asset is to be recorded at the amount paid to acquire…

Q: The entry to record depreciation is an example of an adjusting entry: a. to apportion a recorded…

A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…

Q: As the usefulness of the property and equipment asset account of an entity expires, O A liability is…

A: Asset Account Expires: This occurs when a cost is totally consumed or when a benefit is received in…

Q: Accounting The account "Net-Assets: Resources Released from Restriction" is used to: A) Reduce…

A: Correct option with proper explanation are as follows

Q: If the advance payment of an expense was initially recorded in an expense account, the adjusting…

A: Whenever transactions are recorded relating to an expense, any advance payment for the future period…

Q: Select the correct entry to adjust the unadjusted trial balance for depreciation expense. Select…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Which of the following journal entries correctly reflect settlement date accounting? Select one: a.…

A: In case of settlement accounting, transactions have to be recorded in the books of accounts of the…

Q: Which item would not be classified as an operating expense? a) Interest expense. b)…

A: Operating Expenses Operating expenses are those expenditures that a business incurs to engage in…

Q: Accumulated Depreciation is: Multiple Choice A contra-asset account A liability An expense account A…

A: Depreciation expense is the amount a firm's assets are depreciated for a single month, whereas…

Q: Income earned from incidental operations before an asset is put to use is: deducted from the…

A: Incidental Revenue - Incidental revenue can be earned anytime during or before the assets put to use…

Q: financial statement does depreciation expense go on

A: Depreciation expense is an estimate of wear and tear caused to a fixed asset due to its use in the…

Q: Accounts payable would appear on the balance sheet as a(n) a. asset b. liability c. unearned…

A: Account payable is the account that represents the accounts from where purchases of inventory have…

Q: The accounting treatment for depreciation expense in the balance sheet will be: a. Added to the…

A: Solution: Depreciation is charged on non current assets like equipment, building, vehicle etc. It is…

Q: To capitalize an expenditure is to: Multiple Choice Debit an expense account. Credit an expense…

A: Explanation: Capitalization of expense: Capitalization of expense refers to adding the amount…

Q: In the recording of depreciation expense, which account is credited?

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Listed below are nine technical accounting terms used in this chapter:Unrecorded revenue Adjusting…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: Unearned revenue is: An asset. Income. A liability. An expense.

A: Unearned revenue, as the name suggests, is an advance received from the customer for which the…

Q: value is established on the bases of accepted accounting procedures. value is the amount that could…

A: Solution Concept Book value is the value that appears on the books of accounts . it is as per the…

Q: The accumulated depreciation account in the statement of financial position will be treated in the…

A: Depreciation: Depreciation is the reduction in the value of the asset for a particular period. It is…

Q: An account is a record of increases and in a specific asset, liability, equity, revenue or expense.

A: The question is vague as the statement is first incomplete and second, the question is not…

Q: Give the effects of the following transactions on ASSETS, LIABILITIES, OWNER’S EQUITY, REVENUES, AND…

A: Asset = Liability + Equity + Revenue - Expenses There will always be an equal effect in both the…

Q: Which of the following is created by the adjusting entry to recognize interest expense incurred but…

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…

Q: (a) All non-current assets accounts. (b) Accumulated depreciation accounts for both assets. (c)…

A: Accumulated depreciation is the depreciation which have been a cumulative balance of depreciation…

Q: The entry to record depreciation includes a debit to the ________ account. A. Depreciation…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: For each of the following transactions or adjustments, indicate the effect of the transaction or…

A: Accounting equation is based on the concept of the double entry system where it assumes that each…

Q: IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the…

A: The financial statements are prepared by passing the journal entries, adjusting entries,…

Q: The amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b.…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: What is the difference between Accumulated Depreciation and Depreciation expense? What statements…

A: Accumulated Depreciation is a contra asset, it consists of the accumulated depreciation value since…

Q: The Income Statement Debit column of the worksheet contains A. expense account balances B. asset…

A: Worksheet is a 10 column account or sheet which first shows unadjusted general ledger balances, then…

Q: Return inward appearing in trial balance is deducted from Select one: a. Asset O b. Purchases c.…

A: Introduction: Trial balance: After posting all the balances to ledger accounts trial balance is…

Q: An increase in an asset account is a: A. Debit entry to the asset account B. Credit entry to the…

A: Assets are those tangible and intangible things in the business which the business has right to use…

Q: Which should be classified as a financial asset? a. Patent b. Trade Accounts Receivable c.…

A: Financial assets are also known as non-physical assets. It is because it is generated through a…

Q: The term income a. includes revaluation of land b. includes adjustment of prior period error c.…

A: Income Statement An income statement refers to an important financial statement that provides…

Q: Reversing entries are used in income collected in advance when the adjusting entry has a Debit to an…

A: Income has not yet been earned, it has to be Advance. Then, here is the journal entry…

Q: Accumulated depreciation and depreciation expense are classified respectively as A. Asset, contact…

A: Depreciation is the apportionment of cost of a asset over the life of the asset. Accumulated…

Question

The accumulated depreciation
account in the statement of financial
position will be treated
as a deduction from assets in the
statement of financial position
O in the asset account
as a debit balance in the trial balance
in the statement of profit or loss as an
expense

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements relating to the Accumulated Depreciation account is correct? Select one: O a. The normal balance of the Accumulated Depreciation account is a debit balance. O b. The Accumulated Depreciation account allows the accountant to determine the precise market value of the related asset. O c. The Accumulated Depreciation account is classified as a Liability account. O d. The balance in Accumulated Depreciation account reflects the portion of the historical cost of the asset that has become expense since the item was purchased.
What is the purpose of recognizing depreciation on the financial statements? Is it designed to report PPE at fair value on the balance sheet?
Accumulated depreciation, equipment is reported: Select one: On the balance sheet as a subtraction from the related asset account On the income statement as an expense On the balance sheet as an addition to total assets On the income statement as revenue
Under IFRS, receivables are to be reported on the balance sheet at: a. amortized cost. b. amortized cost adjusted for estimated loss provisions. c. historical cost. d. replacement cost.
Reversing entries maybe used in unearned income when the original collection is recorded as a. Asset b. Liabilty c. Expense d. Income
A. Determine the audited balance of Depreciation expense under the accrual basis B. Determine the audited balance of Net income under the accrual basis
Reversing entries maybe used in unearned income when the original I point collection is recorded as * Asset Liabilty Expense Income
Which one of the following disclousures is required by generally accepted accounting principle? a. Depreciation expense for each major class of asset b. Balances of major classes of depreciable assets, by nature or function c. Accumulated depreciation on each depreciable asset d. An explanation of why the depreciation method used was selected by management
The amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b. Reserves c. Loss of credit d. Provisions
The accounting treatment for depreciation expense in the balance sheet will be: a. Added to the corresponding long term liability b. Added to the corresponding non-current asset c. Deducted from the corresponding long term liability d. Deducted from the corresponding non-current asset
In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall include line item for gains and losses from derecognition of Group of answer choices Financial assets measured at fair value through profit or loss. Financial assets measured at amortized cost. All of these. Financial assets measured at fair value through other comprehensive income.
distinguish between current and non-current assets, and current and non-current liabilitie