Yes depreciation is a nominal account and used to allocated the portion of fixed cost to income statement as an expense for that specific period.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
yes ! it comes under nominal account !!
No, it is a real/permanent account. Insurance expense is a nominal account.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
yes ! it comes under nominal account !!
Nominal A/c
Method 1 1 - [Debit] Depreciation Expense xxxx [Credit] Asset account xxxx Method 2 1 - [Debit] Depreciation Expense xxxx [Credit] Accumulated Depreciation xxxx 2 - [Debit] Accumulated Depreciation xxxx [Credit] Asset Account xxxx
Depreciation expense reduce the cost of asset through income statement for the useful life of asset and accumulated depreciation account is contra account for asset account in balance sheet to show the total amount of depreciation charged.
No, it is a real/permanent account. Insurance expense is a nominal account.
Payroll expense is a nominal account and as it is expense account so like all expense accounts it also have debit account.
No. Accumulated Depreciation is a contra-account which appears on the asset side of the Balance Sheet. It is a credit balance account which reduces the value of Fixed Assets to reflect their declining value due to age and use. The normal offset to an entry to the Accumulated Depreciation account is a debit to Depreciation Expense.
A/D is not temporary. Depreciation expense is the YTD depreciation booked. A/D retains its balance year over year.
No. Accumulated depreciation is depreciation accumulated every year and it will only increase and won't decrease. Depreciation expenses is incurred every year.