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. b. on the balance sheet as an addition to total assets. The contra-account for depreciation is accumulated depreciation. The simulation uses a straight line depreciation method calculated over fifteen years. c. on the income statement as a revenue. on the income statement as an expense.b. ___ 54) Accumulated Depreciation is reported in the A) Balance sheet B) Income statement C) Statement of owner’s equity D) Both a and b ___ 55) Adjusting entries involve A) Only real accounts B) Only nominal accounts C) Only capital accounts D) At least one real and one nominal account ___ 56) Which of the following is an example of an adjusting entry? Fully depreciated assets that continue to be used are reported at cost in the Property, Plant and Equipment section of the balance sheet. Accumulated Depreciation, Equipment is reported. On the balance sheet, the only long term asset we have comes from property, plant and equipment and is the Equipment account. Depreciation is expensed, product by product, on the income statement. Answer to Accumulated Depreciation, Equipment is reporteda. on a balance sheet, accumulated depreciation-equipment is reported as a(n): A. deduction from the cost of the equipment. Fixed assets consist of property, plant, and equipment that are long-term in nature and are used to produce goods or services for the company. C. expense. d. on the balance sheet as a subtraction from the related asset account. In trial balance, the accumulated depreciation expenses are the contra account of the fixed assets accounts. These long-term assets are typically depreciated over time and reported at their historical cost along with the associated accumulated depreciation. The balance sheet provides the reader with a value for total assets and shows how those assets were purchased, with either debt or equity. The accumulated depreciation for these assets is also reported in this section. The accumulated depreciation account is an asset account with a credit balance (also known as a contra asset account); this means that it appears on the balance sheet as a reduction from the gross amount of fixed assets reported. Additional equipment was purchased for $220,000 cash. The amount of a long-term asset’s cost that has been allocated, since the time that the asset was acquired. a. on the income statement as an expense. If you are also familiar with provision for loan or account receivable, these are also the contra account of loans or receivables so that the loan or AR will be reported at the net in the balance sheet. B. liability. As a result, the combination of these assets' costs minus their accumulated depreciation will likely be a net amount of zero. 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