0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
When an account receivable is collected in cash the total assets of the business increase?
the increase side of an account is also the side of the normal balance
The normal balance of any account is the left side?
side which increases that account.
Is the normal balance side of a liability account the debit side?
Normal balance of all liabilities accounts are credit side while debit balance is of all expenses and assets.
What is the normal balance of a bonds payable account?
Normal balance of bonds payable account is credit account and it is shown under liability side of balance sheet because these are the amounts payable in future.
What happens if If an amount is recorded on the side of a T account opposite the normal balance side?
decreased
If an amount is recorded on the side of a T account opposite the normal balance side the account balance is?
decreased
When an account receivable is collected in cash the total assets of the business increase?
the increase side of an account is also the side of the normal balance
The normal balance of any account is the left side?
side which increases that account.
Is the normal balance side of a liability account the debit side?
Normal balance of all liabilities accounts are credit side while debit balance is of all expenses and assets.
What is the normal balance of a bonds payable account?
Normal balance of bonds payable account is credit account and it is shown under liability side of balance sheet because these are the amounts payable in future.
When an accounts receivable is collected in cash the total assets of the business increase?
the increase side of an account is also the side of the normal balance
What happens if If an amount is recorded on the side of a T account the normal balance side?
decreased
What happens if If an amount is recorded on the side of a T account opposite the normal balance side?
decreased
Normal balance of accounts receivable is?
Since its on the left side of the basic account equation of assets= liabilities + equity its normal balance would be a debit
Which type of account is prepaid expenses?
Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.
Why accumulated depreciation is recorded in the asset of balance sheet instead of recording in the liabilities side?
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
Is Accumulated depreciation account is an expense 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.
