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FALSE, It's a contra-asset
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Is provision for depreciation is current liability?
NO, it is not a liability it is a con-tra account
Is accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
What is provision for depreciation and how do you treat it in accounts?
A provision of depreciation account is different than other accounts because it collects all of the value of depreciation within the account. In the main asset account, depreciation is not credited because it is credited into this account.
Is accounts recievable a current liability?
Accounts receivable is a current asset, never a current liability.
When a company records depreciation it debits?
debits expense accounts and credits contra accounts
The accounting procedure that accounts for most of the deferred income tax liability for most companies is?
depreciation expense
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is provision for depreciation is current liability?
NO, it is not a liability it is a con-tra account
Is accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
Is accumalted depreciation a liability?
No, even though accumulated depreciation has a credit balance, it is shown under assets. Accumulated depreciation is a contra T-account to a fixed tangible asset. For example, "Accumulated depreciation machines" is a contra T-account to "Machines". Contra T-accounts are presented together with the T-account they are connected with. Therefore, accumulated depreciation is shown on the debit side with assets. As it has a credit balance, the balance is subtracted. (The sign of a T-account 'flips' when the T-account is included on the opposite side on the balance sheet.)
What is provision for depreciation and how do you treat it in accounts?
A provision of depreciation account is different than other accounts because it collects all of the value of depreciation within the account. In the main asset account, depreciation is not credited because it is credited into this account.
What is a liability account?
Liability Accounts record obligations of a business towards its creditors. Examples of liability accounts are Accounts Payable, Interest Payable, Wages Payable. These accounts appear on the balance sheet.
Where does the accumulated depreciation appear on?
Accumulated Depreciation is a liability nature of account to reduce the contra asset from balance sheet that's why it only shows in liability side of balance sheet to show reduction of asset.
Is accounts recievable a current liability?
Accounts receivable is a current asset, never a current liability.
When a company records depreciation it debits?
debits expense accounts and credits contra accounts
If the accumulated depreciation account normally has a credit balance is it a liability?
false.
What accounts will be closed by debiting the Income Summary?
Depreciation Expense
