Question

Accumulated Depreciation is referred to as a ___________________ asset account because it offsets a related asset...

Accumulated Depreciation is referred to as a ___________________ asset account because it offsets a related asset account.

(I think the answer is Contra?)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2
  • Accumulated depreciation is a contra-asset account, it offsets the value of the asset that is depreciating.
  • Accumulated depreciation is a negative balance reported on the balance sheet under the long-term assets.
  • Accumulated depreciation increases with the decrease in the fair value of the asset.
  • Purpose of the accumulated depreciation is to spread the total cost of an asset over its useful life.

Accumulated Depreciation is referred to as a ___contra___ asset account because it offsets a related asset account.

Answer is Contra.

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Accumulated depreciation represents a contra-asset that reduces the net book value of property, plant, and equipment....
Accumulated depreciation represents a contra-asset that reduces the net book value of property, plant, and equipment. True or False?
A lessor has an account, Equipment leased to others, and the related account, Accumulated Depreciation: Equipment...
A lessor has an account, Equipment leased to others, and the related account, Accumulated Depreciation: Equipment leased to others , on its year-end balance sheet.How should the lease related to these account be classified? a) operation lease b) direct financing lease c) sales type lease d) leveraged lease.
➢ What does the balance in the accumulated depreciation account represent? Does this balance represent cash...
➢ What does the balance in the accumulated depreciation account represent? Does this balance represent cash that can be used to replace the related plant asset when it is completely depreciated?
Accumulated Depreciation is a (an) ------------------- account. The normal balance of this account is a -------------------.
Accumulated Depreciation is a (an) ------------------- account. The normal balance of this account is a -------------------.
The balance in the Accumulated Depreciation account represents the: a) cash fund to be used to...
The balance in the Accumulated Depreciation account represents the: a) cash fund to be used to replace plant assets b) amount to be deducted from the cost of the plant asset to arrive at its fair market value c) amount charged to expense in the current period d) amount charged to expense since the acquisition of the plant asset *** PLEASE EXPLAIN WHY THAT IS THE ANSWER!
Identify each account listed as an Asset, a Contra-Asset, a Liability, an Equity, a Revenue, or...
Identify each account listed as an Asset, a Contra-Asset, a Liability, an Equity, a Revenue, or an Expense. Accounts Payable Accounts Receivable Accumulated Depreciation, Equipment Allowance for Doubtful Accounts Cash and Cash Equivalents Common Stock, no-par Cost of Goods Sold Depreciation Expense Dividends Equipment Income Tax Expense Insurance Expense Inventories Land Notes Payable Other Operating Expense Prepaid Insurance Retained Earnings Salary Expense Salary Payable Sales Revenue Unearned Revenue
which of these listed is the sales allowance account? Group of answer choices Contra Revenue account...
which of these listed is the sales allowance account? Group of answer choices Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time. Contra Revenue account representing seller reduction of customers’ balance owed or provision of a partial refund because of some deficiency in the company’s product or service. Contra asset account representing the amount of accounts receivable that we do not...
A fixed asset with a cost of $30,105 and accumulated depreciation of $27,095 is traded for...
A fixed asset with a cost of $30,105 and accumulated depreciation of $27,095 is traded for a similar asset priced at $69,349. Assuming a trade-in allowance of $4,597, the cost basis of the new asset in a transaction with commercial substance is Select the correct answer. $4,597 $25,508 $1,587 $69,349 Mobile Co. issued a $43,955, 60-day, discounted note to Guarantee Bank. The discount rate is 9%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer....
XYZ sold an asset with a cost of $25,000 and accumulated depreciation at the time of...
XYZ sold an asset with a cost of $25,000 and accumulated depreciation at the time of sale of $15,000 for $11,500. Prepare the journal entry for this transaction.
Why is the balance in the Depreciation Expense account generally different from the balance in the...
Why is the balance in the Depreciation Expense account generally different from the balance in the Accumulated Depreciation account? a) The adjusting entry contains a different amount for Depreciation Expense and Accumulated Depreciation. b) Depreciation expense only reflects the current period depreciation. Accumulated Depreciation contains depreciation since the asset was purchased. c) The Accumulated Depreciation account contains the value of the long-lived asset as well as the depreciation. d) The balances in the two accounts should be the same amount.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT