According to GAAP, Fixed Assets Are Typically Recorded on the Balance

question 82

Multiple Choice

According to GAAP, fixed assets are typically recorded on the balance sheet at:

• A)historical cost plus depreciation.
• B)market value.
• C)salvage value.
• D)historical cost less depreciation.

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Definitions:

Unearned Rent

Income received for rent before the rental period has occurred, classified as a liability until the period passes.

Adjusting Entry

An accounting record entry made at the conclusion of an accounting period to assign income and expenses to the period they genuinely happened.

Revenue Account

An account that tracks the income earned from normal business operations, including sales of goods or services.

Income Statement

A financial document that shows a company's revenues, expenses, and net profit or loss over a specific period of time.