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The answer to this question depends on the value of the depreciable assets the company has, the useful lives of the assets, and the depreciation methods used. When a firm owns many depreciable assets, depreciation expense will be higher. The longer the useful lives of the assets, the less the depreciation expense will be per period because the expense is being allocated over a longer period of time. The depreciation method also has a huge impact. If the straight-line method is used, then the expense will be constant each period. If another method such as double-declining balance is used, higher depreciation will occur during the beginning of the life of the asset. All of these factors affect the balance of the depreciation expense account.
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What is depreciation expense?
normal balance of debit
Which T-accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Normal Balance Debit: (Asset, Expense, Dividend) Accounts Receivable Inventory Equipment Supplies Prepaid Rent Prepaid Insurance Cash Supplies Expense Depreciation Expense Rent Expense Salaries Expense Cost of Goods Sold Normal Balance Credit: (Liability, Shareholder Equity, Revenue, Retained Earnings) Accounts Payable Salaries Payable Accumulated Depreciation Retained Earnings Unearned Revenue Service Revenue Common Stock
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.
What kind of account is linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account?
The account you are asking about is called a contra account. One example of a contra account is "Accumulated Depreciation." Accumulated Depreciation (or A/D for short) is grouped with fixed asset accounts on the balance sheet. The normal balance for A/D is a credit, while all other asset accounts (besides other contra accounts) have a normal debit balance. The credit balance in A/D is netted with the debit balance in fixed assets to determine the net book value (NBV) of the fixed assets.
What is the normal balance for accounts payable?
Accounts payable is a liability account and all liability accounts have credit balance as normal balance so accounts payable is also credit as a normal balance
What is depreciation expense?
normal balance of debit
Which T-accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Normal Balance Debit: (Asset, Expense, Dividend) Accounts Receivable Inventory Equipment Supplies Prepaid Rent Prepaid Insurance Cash Supplies Expense Depreciation Expense Rent Expense Salaries Expense Cost of Goods Sold Normal Balance Credit: (Liability, Shareholder Equity, Revenue, Retained Earnings) Accounts Payable Salaries Payable Accumulated Depreciation Retained Earnings Unearned Revenue Service Revenue Common Stock
What is the normal balance of accumulated depreciation?
the normal balance of accumulated depreciation is "credit"
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.
The Accumulated Depreciation's account balance is the sum of depreciation expense recorded in past periods true or false?
Yes. Accumulated depreciation is a contra asset account, which means it has an opposite balance from a normal asset account. It is used to reduce the balance whatever asset you are deprecating. When you total your assets on the balance sheet, you deduct the cost of Accumulated depreciation from your assets to get the true worth of your assets.
What kind of account is linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account?
The account you are asking about is called a contra account. One example of a contra account is "Accumulated Depreciation." Accumulated Depreciation (or A/D for short) is grouped with fixed asset accounts on the balance sheet. The normal balance for A/D is a credit, while all other asset accounts (besides other contra accounts) have a normal debit balance. The credit balance in A/D is netted with the debit balance in fixed assets to determine the net book value (NBV) of the fixed assets.
The normal balance of the accumulated depreciation account is debit?
False. Normal Credit Balance.
What is the normal balance for accounts payable?
Accounts payable is a liability account and all liability accounts have credit balance as normal balance so accounts payable is also credit as a normal balance
Accumulated depreciation debit or credit?
Accumulated depreciation is a contra account for specific fixed asset so fixed assets has debit balance as normal balance so accumulated depreciation has credit balance as default balance.
What is normal balance of a revenue?
All revenue accounts has credit balance as a normal balance
What is the normal balance of a expense account?
debit
What is the normal balance of an expense account is?
Debit
