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Descriptions of asset accounts Cash. Cash includes currency, coins, checking account balances, petty cash funds, and customers' checks that have not yet been deposited. ... Short-term Investments. ... Accounts Receivable. ... Allowance for Doubtful Accounts. ... Accrued Revenues/Receivables. ... Prepaid Expenses. ... Inventory. ... Supplies.

The asset disposal results in a direct effect on the company's financial statements. In all scenarios, this affects the balance sheet by removing a capital asset. Also, if a company disposes of assets by selling with gain or loss, the gain and loss should be reported on the income statement.

How Do I Record Depreciation? Depreciation is recorded as a debit to a depreciation expense account and a credit to a contra asset account called accumulated depreciation. Contra accounts are used to track reductions in the valuation of an account without changing the balance in the original account.

Assets: any resource your company owns that provides value. Assets may include the following. Cash. Accounts receivable.

Depreciation expense is reported on the income statement as any other normal business expense, while accumulated depreciation is a running total of depreciation expense reported on the balance sheet.

Accumulated depreciation appears in a contra asset account on the balance sheet reducing the gross amount of fixed assets reported.

Accumulated depreciation is an asset account with a credit balance known as a long-term contra asset account that is reported on the balance sheet under the heading Property, Plant and Equipment. The amount of a long-term asset's cost that has been allocated, since the time that the asset was acquired.

Where Is Accumulated Depreciation Recorded? Accumulated depreciation is recorded as a contra asset via the credit portion of a journal entry. Accumulated depreciation is nested under the long-term assets section of a balance sheet and reduces the net book value of a capital asset.