General Ledger Accounts Commonly Used in PPE Are

question 63

Multiple Choice

General ledger accounts commonly used in PPE are:

• A) accumulated depreciation.
• B) depreciation expense.
• C) the asset at cost or valuation.
• D) all of the above

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Definitions:

Accrual Earnings

Earnings that are recognized when revenues are earned and expenses are incurred, not necessarily when cash is received or paid.

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement.

Direct Method

The Direct Method in accounting is a way to present the cash flow statement, showing actual cash receipts and payments, directly reporting major classes of gross cash receipts and payments.

Accrual Accounts

Accounts that record revenues and expenses when they are earned or incurred, not necessarily when cash is received or paid.