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Name 1. Accumulated Depreciation, Equipment, is shown as atn) a. expense on the

ID: 2573033 • Letter: N

Question

Name 1. Accumulated Depreciation, Equipment, is shown as atn) a. expense on the income statement b. liability on the balance sheet c deduction from net income on the statement of owner's equity d. contra account on the balance sheet. e. addition to equipment on the balance sheet 2. Accrued wages are wages that a have been earned by employees but not paid b. have been paid c. have been neither earned by employees nor paid. d. were earned by employees and have been paid e have been paid but not earned by employees 3. The type of account and normal balance of Accumulated Depreciation are contra asset, debit. a. b. asset, credit c. asset, debit. d. liability, credit. e contra asset, credit. 4. The adjusting entry to record depreciation of equipment is a. debit Accumulated Depreciation; credit Depreciation Expense. b. debit Depreciation Expe nse; credit Accumulated Depreciation. c. debit Equipment; credit Accumulated Depreciation. d. debit Depreciation Expense; credit Depreciation Payable. e. debit Accumulated Depreciation; credit Equipment 5. If the Income Statement Debit and Credit columns on a work sheet are not equal after adding the respective columns, a. an error has been made. the company generated a net income. the company incurred a net loss. the liabilities must exceed the assets. b. c. d. e. the company either generated a net income or incurred a net loss. 6. The Income Statement Debit column of the work sheet contains a. expense account balances. b. asset account balances. c. liability account balances. revenue account balances. contra-asset account balances. d. e.

Explanation / Answer

Q 1: Answer is D. Contra account on the balance sheet.

It is shown as deduction from gross assets in the balance sheet.

Q2. Answer is A. wages earned by employees but not paid

Q3. Answer is E. Contra assets account and credit balance.

Q4. Answer is B. debit depreciation expense and credit accumulated depreciation.

Journal entry is:

Depreciation Expense Dr.

Accumulated Depreciation Cr.