A Journal Entry

question 26

Multiple Choice

A journal entry

• A) must have the same number of debit entries as credit entries.
• B) must have a debit to an asset and a credit to a liability.
• C) only affect balance sheet accounts.
• D) must have the total of the debit entries equal to the credit entries.

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Definitions:

Depreciable Cost

The total cost of a fixed asset that can be depreciated over its useful life, excluding salvage value.

Residual Value

The estimated salvage value or the value of an asset at the end of its useful life.

Accumulated Depreciation

A cumulative account that records the depreciation expense of an asset, reducing its book value over time.

Initial Cost

The original acquisition cost of an asset or investment, prior to any adjustments for depreciation, improvement, or amortization.