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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.
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Accumulated Depreciation is reported on the income statement?
Accumulated Depreciation is reported on the balance sheetbecause it deals with the assets. However, depreciation expense is mentioned on the income statement.
Is Accumulated Depreciation is reported on the income statement?
Accumulated Depreciation is reported on the balance sheetbecause it deals with the assets. However, depreciation expense is mentioned on the income statement.
Accumulated Depreciation is reported on the income sheet?
no. accumulated depreciation goes under non current asset on the Balance sheet
Is depreciation on balance sheet or income statement?
Depreciation on the income statement is the amount of depreciation expense that is appropriate for the period of time indicated in the heading of the income statement. The depreciation reported on the balance sheet is the accumulated or the cumulative total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet.Let’s illustrate the difference with an example. A company has only one depreciable asset that was acquired three years ago at a cost of $120,000. The asset is expected to have a useful life of 10 years and no salvage value. The company uses straight-line depreciation on its monthly financial statements. In the asset’s 36th month of service, the monthly income statement will report depreciation expense of $1,000. On the balance sheet dated as of the last day of the 36th month, accumulated depreciation will be reported as $36,000. In the 37th month, the income statement will report $1,000 of depreciation expense. At the end of the 37th month, the balance sheet will report accumulated depreciation of $37,000.
What is the double effect of depreciation?
When allocating depreciation, the two accounts affected will be an expense account - depreciation and a negative asset/contra-asset - accumulated depreciation. The journal entry would be: Dr Depreciation xxxx Cr Accumulated Depreciation xxxx This effectively raises the expense and decreases your asset. In the general ledger the depreciation account will be debited and the accumulated depreciation will be credited.
What is the difference between accumulated depreciation and an depreciable asset?
Depreciable asset - accumulated depraecation = net of Depreciable asset (PPE) Which is the reported PPE(net)
Are Depreciation Expenses reported on the balance sheet as an addition to the related asset?
Depreciation or accumulated depreciation is deducted from related assets in balance sheet to show the net book value of asset.
Unearned revenue is reported in the financial statement as what?
How do you reported unearned janitorial revenue in the financial statements
What is Unearned revenue reported as in a financial statements?
A liability.
Presenting consolidated financial statements this year when statements of individual companies were presented last year is?
an accounting change that should be reported by restating the financial statements of all prior periods presented.
What part of balance sheet is allowance for doubtful accounts reported?
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
What does the term book value mean?
The meaning of the term book value will depend on how you are using it. If it is referred to as a company, it would mean how much money would be left over if the company went out of business immediately. If referring to a car, it would be the amount of money the car is worth at that particular time.
