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Accounting Questions?
Accounting Questions?
Hi, I am not sure about the answers of following questions, please also give a short explanation.
1. Which of the following accounts probably would need to be adjusted at year-end?
a. Supplies
b. Land
c. Dividends
d. Notes Payable
2. Expenses are incurred:
a. only during the adjustment process.
b. to produce assets.
c. to reduce liabilities.
d. to generate revenue.
3. The adjusting entry to record depreciation of equipment is
a. debit Accumulated Depreciation, Equipment, credit Depreciation Expense Equipment.
b. debit Depreciation Expense, Equipment, credit Equipment
c. debitEquipment, credit Accumulated Depreciation
d. debit Depreciation Expense, Equipment, credit Depreciation Payable
e. none of the above
4. The type of account and normal balance of Accumulated Depreciation is:
a. contra asset, debit
b. asset, credit
c. asset, debit
d. contra asset, credit
Answers:
lory: 1. D supplies, land and notes paayble are adjusted as they are incurred or purchased during the year .
Where as ,the profit for the year has to be calculated before a dividend is declared at year end .
2.....hmmmm
3.depreciation of equpment results in the followin
* equipment account is credited to show that the depreciation has lowered the value of the asset
* accumulated depreciation is credited with an increase in depreciation.
*depreciation expense is debited with the current depreciation expense
4.accumulated depreciaition is a contra asset with a credit balance
2008-02-24 10:56:39
2. I would have to say c. to reduce liabilities, none of the other answers make any sense.
3. c. debit equiment, credit accumulated depreciation.
4. d. contra asset, credit
2008-02-25 08:52:49