3. Accrual Accounting Concepts
Adjusting Entries: Depreciation
3. Accrual Accounting Concepts
Adjusting Entries: Depreciation
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Practice this topic
- Multiple Choice
On January 1, Super Car Wash purchases a brand new auto-washing machine on account for \$40,000. The company expects the machine to last eight years. The company chose the 'straight-line' method to depreciate the asset, expecting no salvage value. The adjusting entry at the end of the first year would include:
485views11rank - Multiple Choice
What will be the book value of the asset after two years?
453views7rank - Multiple Choice
On January 1, 1989 XYX Company purchased a machine for \$180,000 in cash. The company estimated a nine year useful life with no salvage value. After the correct entries are made, what will be the balance in the Accumulated Depreciation account on December 31, 1992?
358views11rank - Multiple ChoiceWhat is the purpose of the accumulated depreciation account in financial accounting?99views