Yes it is. Permanent accounts are balance sheet accounts which do not close at the end of the accounting year, as opposed to income statement account balances which are removed an added to retained earnings.
Another words income statement accounts are measured for a certain period of time whereas balance sheet accounts carry on to the following years.
It may be either permanent or temporary depreciation expense account depending on the market.
A/D is not temporary. Depreciation expense is the YTD depreciation booked. A/D retains its balance year over year.
A/D is not temporary. Depreciation expense is the YTD depreciation booked. A/D retains its balance year over year.
No it is a temporary account
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
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
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
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.
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.
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
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.
No. Accumulated depreciation is depreciation accumulated every year and it will only increase and won't decrease. Depreciation expenses is incurred every year.
A prepaid expense account is an asset, thus not a temporary account either.