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Will an adjusting entry ever affect the asset account called cash?
Wiki User
∙ 9y ago
Adjusting entries never affect cash. The entry is entered to make sure that the books match what the cash balance says.
Wiki User
∙ 9y ago
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Adjusting entries affect at least one?
Adjusting entries in the accounting process affect a lot of different accounts. It can affect any asset, liability, or accruals and deferrals accounts.
If the effect of the debit portion of an adjusting entry is to increase the balance of an asset account describe the effect of the credit portion of the entry?
increase the balance of the liability account :)
The difference between an asset account and its contra account balance is called?
net balance
What type of account is accumulated depreciation and how is it reported in the financial statements?
Accumulated depreciation is a contra-asset account and show in the asset section of the Balance Sheet. It is called contra-asset account because contrary to any asset account Acc. Dep. is a credit type of account. The offset of Accumulated depreciation is to Debit the expense account Depreciation.
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Is a cheque account an asset?
The account itself is not an asset, but any money credited to the account is.
Is bank account an asset?
Yes, bank account is an asset (provided it is not a loan or credit card account). Since a Bank account is a place where we deposit and keep money, it can be considered an asset. (And this is only as long as you have cash in your account. If your account balance is 0 it is not an asset)
What is the journal entries for disposal of fixed asset?
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
Where is the retirement of an asset recorded?
The "retirement" or "disposal" (as it's usually listed as) is recorded in a couple of different ways depending on how the asset is disposed of. One entry that will not change regardless of how the company disposes of the asset is the account related to said asset. For example, if the company is disposing of a truck, the one account entry that will not change will be Equipment-truck, this account will be credited for the balance. The fact that the fixed asset account has a debit balance, we now credit the account to bring it to a zero balance and remove the truck from our records. Company's may choose to dispose of, sale, or trade the fixed asset. Disposing of the fixed asset does not involve the exchange of money or another asset. Selling of the asset involves receiving cash for the asset. Trading involves receiving another asset in exchange for the asset the company is disposing of. This transaction will affect the balance sheet as it affects the assets of a company.
What is the detailed record of the changes in a particular asset or liability or owners equity called?
account
What does an asset expense relationship exist with?
prepaid expense adjusting entries
The transaction would increase an asset account and increase a liability account?
The transaction would increase an asset account and increase a liability account?
