The accumulated depreciationaccount in the statement of financialposition will be treatedin the asset accountas a debit balance in the trial balanceas a deduction from assets in thestatement of financial positionin the statement of profit or loss as anexpense

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

Answered: The accumulated depreciation account in…

Business

Accounting

The accumulated depreciation account in the statement of financial position will be treated in the asset account

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: As generally used in accounting, what is depreciation? a. It is an accounting process which…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: After the disposal of an asset, the balance in the Accumulated Depreciation account related to that…

A: Depreciation are required to be charged by the business entities so as to shown the assets in the…

Q: How was the depreciation for fix assets calculated?

A: Deprecaition Expenses There are different method which are used to calculate the deprecation of the…

Q: List all the fixed assets and categories them in Tangible and Intangible Assets. Non-current…

A: Introduction Fixed assets: Fixed assets are those assets which generates benefit and revenue for…

Q: Which of the following costs are reported on a company’s income statement andbalance sheet?Income…

A: An Income Statement of a company shows the company's Revenue and Expenses during a particular…

Q: How do you identify an asset with reference to AASB? How should an asset be recognized in the…

A: Step 1 An asset is a tangible or intangible attribute having financial or economic value that an…

Q: Which of the following accounts would be included in the property, plant, and equipment category of…

A: A classified balance sheet is a financial statement which shows the assets, liabilities, and equity…

Q: True (t) or False (f) ______ Recording depreciation on plant assets affects the balance sheet and…

A: The answer is "True (t)"

Q: The depreciation procedures that apply to the main kinds of depreciable assets in general?

A: Depreciation is an accounting method for allocating the cost of a tangible or physical asset over…

Q: for the asset turnover ratio, which of the following best describes net assets? A. Fixed Assets +…

A: Asset turnover ratio is a measure which says that how effectively business assets are generating…

Q: Which of the following accounts would be classified as a current asset? Group of answer choices land…

A: Current assets are those assets that can be liquidated or converted into cash easily. Any asset…

Q: Match each of the following accounts to its proper balance sheet classification. Accounts payable…

A: Balance sheet is the financial statement of a company. It helps in maintaining the records of…

Q: Required: Prepare journal entries to record each of these transactions. Assume that depreciation…

A: Journalizing is the action of recording and classifying a business transaction into books of…

Q: Explain the accounting treatment and disclosures required when a change is made in depreciation…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed…

Q: The value of "Property, Plant, & Equipment, net" reported on the balance sheet represents: A) The…

A: Fixed assets are an unavoidable component of every business organization. These assets are useful in…

Q: Iculate the Company's depreciation and amortization expe

A: The production volume of a corporation is determined by calculating NOPAT on operating income.By…

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: The “carrying value” of a long term asset on the Balance Sheet represents: a. The net book value of…

A: Correct answer-option a:The net book value of the asset

Q: Discuss about the revenue/expense approach and also about the asset/liability approach.

A: Any amount of money spent to generate the revenues in a business is known as expenses. Revenue is…

Q: Match the following assets with its type. Current Asset, Fixed Asset, Contra Asset Accounts…

A: Current assets are assets that can be converted into cash in short period of time. Fixed assets are…

Q: Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are…

A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Q: Which of the following is the correct calculation of book value? a. Cost - Impairment expense b.…

A: Book value (B.V) is the worth of the asset at a specified date.

Q: Depreciation expense is used to

A: Depreciation is gradual decrease in the value of asset due to normal wear and tear, obsolescence and…

Q: Which of the following are assets? (Select all that apply.) Land Supplies Expense Wages Payable…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Which one of the following disclousures is required by generally accepted accounting principle? a.…

A: The correct option is B. Balances of major classes of depreciable assets, by nature or function.

Q: Distinguish between ‘Receipts and Payments Account’ and ‘Income and Expenditure Account’ on the…

A: Table showing difference between" Receipts and Payment Accounts" and "Income and Expenditure…

Q: How should an asset be recognized in the financial statement? How should asset be measured?

A: The balance sheet shows the resources controlled by the entity from past events from which economic…

Q: Describe the method of the asset's depreciation?

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

Q: Which of the following are assets? (Select all that apply.) O Land Supplies Expense OWages Payable…

A: Assets are those resources that provide economic benefits. These assets help to generate revenue…

Q: What is book value (or net book value) of plant and equipment and on which financial statement is it…

A: Book value means the value at which it is shown in financial statements.

Q: In a classified balance sheet, assets are usually classified as: Choose current assets; long-term…

A: Classified balance sheet is the detailed analysis of assets, liabilities and equity of the…

Q: What type of assets requires adjusting entries to record depreciation?

A: The assets that require adjusting entries to record depreciation is long-term tangible assets. The…

Q: he amount of accumulated depreciation fo O A. cash payments for selling and admi

A: The accumulated depreciation is the sum of the total depreciation expense incurred on a particular…

Q: What factors must be known or estimated in order to compute depreciation expense?

A: Definition: Depreciation: Depreciation is a decrease in the value of the fixed assets over a period…

Q: Which of the following statements relating to the Accumulated Depreciation account is correct?…

A: Accumulated depreciation account is cumulative depreciation of an asset. Its not an expense…

Q: Describe the accounting changes in depreciation.

A: Accounting Changes: Accounting changes can be described as a process of change in accounting…

Q: class. Compute the MACRS percentages and the depreciation amounts for the asset.

A: MARCS percentage(The Modified Accelerated Cost Recovery System) United states uses this current tax…

Q: How depreciation has calculated all step in details?

A: Financial Statements:-These are statements prepared by the company in order to know its financial…

Q: Please explain Tangible and Intangible Assets. What are types of both? Also Intangible Assets are…

A: Step1: Definition of tangible asset and intangible assets. We have,Tangible assets are those assets…

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…

Q: Explain the following terms: (a)Depreciation, (b)accumulated depreciation, (c)book value, (d)fixed…

A: Solution- a) Depreciation- Depreciation refers to an indirect and explicit cost that a company…

Q: Explain how depreciation expense satisfies the definition of an expense

A: Depreciation is the amount with which an asset’s value decreases every year. Example:- Machinery…

Q: The historical cost principle requires that when assets are acquired, they be recorded at appraisal…

A: The historical principle helps to determine the value of assets to be recorded in the books of…

Q: What is depreciation, and how is it computed

A: SOLUTION- MEANING OF DEPRECIATION- IT CAN BE DEFINED AS A CONTINUING, PERMANENT AND GRADUAL DECREASE…

Question

The accumulated depreciation
account in the statement of financial
position will be treated
in the asset account
as a debit balance in the trial balance
as a deduction from assets in the
statement of financial position
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 with 1 images

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

Accounts Payable is an example of an asset account.
Also known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Asset Valuation and Income Recognition. Asset valuation and recognition of net income closely relate. Explain, including conditions when they do not.
Define current assets and current liabilities. Why are current assets and current liabilities separated from noncurrent assets and long-term liabilities on the balance sheet?
If a company reports a gain/(loss) from the sale of assets, as part of the net income on the income statement, and the net book value of those assets on the date of the sale is known, can the amount of the cash proceeds from the sale be determined? If so, how?
Describe the relationship between expense recognition and long-term assets.
On which financial statement would the Accumulated Depreciation account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows
On the work sheet, Accumulated Depreciation, Equipment would be recorded in which of the following columns? a. Adjusted Trial Balance, Credit b. Income Statement, Debit c. Balance Sheet, Debit d. Income Statement, Credit
Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
Which of the following represents an event that is less routine when accounting for long-term assets? A. recording an asset purchase B. recording depreciation on an asset C. recording accumulated depreciation for an asset or asset category D. changing the estimated useful life of an asset
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