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Is accumulated depreciation a real or temporary account and why?
Wiki User
∙ 12y ago
It's a real account.
Easy way to remember it is by remembering the accounting formula.
Assets= Liabilities+ Capital- Withdrawals+ Revenue- Expenses
Withdrawals, Revenue and Expenses are temporary and get closed at the end of the accounting cycle. Since Accumulated Depreciation falls under the Assets account and is a contra asset
Wiki User
∙ 12y ago
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Is accumulated depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
What is the journal entry to record depreciation expense?
The depreciation for the financial statements is entered into the accounts via a general journal entry ;Debit Depreciation ExpenseCredit Accumulated DepreciationDepreciationA non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. To be clear, this is an accounting expense not a real expense that demands cash. The sum of depreciation expenses of prior years leads to the balance sheet item Accumulated Depreciation.It is an expense, but because it is non-cash, it is often effectively a tax write-off; that is, a person or company usually may reduce his/her/its taxable income by the amount of the depreciation on the asset. Because there are many different ways to account depreciation, it often bears only a rough resemblance to the asset's useful life. This may further benefit the company as they may continue to use the asset tax-free after its value has technically depreciated to nothing.
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
Is capital account is real account or nominal account?
Real Account
Is accumulated depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is goodwill is real account?
yes , according to GAP , you can also create a accumulated deprecation account for it
Temporary crown smell?
Its bacteria accumulated feom bleeding and food and plaque getting in between the temp crown because its not fitted perfectly. Once you get real crown it will be better.
What is the journal entry to record depreciation expense?
The depreciation for the financial statements is entered into the accounts via a general journal entry ;Debit Depreciation ExpenseCredit Accumulated DepreciationDepreciationA non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. To be clear, this is an accounting expense not a real expense that demands cash. The sum of depreciation expenses of prior years leads to the balance sheet item Accumulated Depreciation.It is an expense, but because it is non-cash, it is often effectively a tax write-off; that is, a person or company usually may reduce his/her/its taxable income by the amount of the depreciation on the asset. Because there are many different ways to account depreciation, it often bears only a rough resemblance to the asset's useful life. This may further benefit the company as they may continue to use the asset tax-free after its value has technically depreciated to nothing.
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
What is real estate depreciation?
It is the decrease in the value of land and or buildings.
Is capital account is real account or nominal account?
Real Account
Is debtor account a real account?
Yes, it is a real account
If you had an allergic reaction to a temporary tattoo will you have the same reaction to a real tattoo?
No. Real and temporary tattoos have nothing in common other than the name and that they are body art. The ink used for real tattoos is not the same used to create temporary ones.
Is Sales Account nominal or real account?
real accounts
Why real account is called real account?
Because these are the only accounts which have real existance like cash account and bank account other accounts are just in books of accounts and no real physical existance.
