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Can depreciation on a Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixed Asset?
Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.
One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.
The depreciation entry debits depreciation expense and credits accumulated depreciation.
What else can I help you with?
On what statement does owner's drawing account go?
After adjustments has been made, the drawing account is carried to the balance sheet. And it is deducted from profit or revenue in Statement of Changes in Equity to determine the Owner's capital ending for the month end or year end. - mpa
How do you determine your mass?
It is carried out by physical balance and the weight by spring balance.
What is the Purpose of the post-closing trial balance?
The purpose of the post-closing trial balance is to prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
What is the Purpose of Post-Closing Trial Balance?
The purpose of the post-closing trial balance is to prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
Purpose of the post- closing trial balance?
The purpose of the post-closing trial balance is to prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
What are the advantages of merger?
Advantages of merger are as follows. Benefits on account of tax sheilds like carried forward losses or unclaimed depreciation . Restructuring and strengthening the balance sheet . Ivestment of surplus cash . Enhancement of market share . Reduction of competition . Growth with the amalgamation of the competitive advantage of both the firms . Investment of surplus cash . Easy to acfquire economies of scale .
What is accumulated loss?
A loss (or losses) from previous years carried forward in order to offset future earnings. This reduces the tax burden for the years with profit as the accummulated losses are deducted from the taxable profit-
The front wheels of a lift truck serve as what between the weight of the truck and the weight of the load being carried?
Fulcrum Point
What is the difference between expired cost and unexpired cos?
Expired costs are costs that have been used up or consumed in the production of goods or services, while unexpired costs are costs that have yet to be consumed. Expired costs are included in the cost of goods sold and are deducted from revenue to calculate profitability, while unexpired costs are carried forward on the balance sheet as assets until they are used.
How do you make a trial balance from T Accounts?
You would add up both columns on the T account and put the highest figure as the total for BOTH columns. Then in the column which was less you add a balancing figure call Balance Carried Forward to make that column match the other. Below the totals you would put Balance Brought Foward which is the same as the balance carried forward but it should go on the other side. You then list all the Balance Brought Fowards figures, keeping them in their debit or credit side. That list becomes the trial balance.
What is the Balance point of forklift?
The balance point of a forklift is the center of gravity of the forklift, where the weight of the forklift is evenly distributed. It is important for operators to understand the balance point to prevent tipping over when carrying loads. The balance point can vary depending on the load being carried and the design of the forklift.
The front wheels of a lift truck serve as the between the weight of the truck and the weight of the load being carried?
balance point
