The Normal Balance for Any Account Is Always the Side

question 42

True/False

The normal balance for any account is always the side of the account (debit or credit)where the largest amount is found.

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Definitions:

Straight-Line Method

A method of calculating depreciation for an asset, spreading the cost evenly over its useful life.

Depreciation Expense

It is an accounting method of allocating the cost of a tangible asset over its useful life.

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset evenly over its useful life, assigning a fixed expense amount to every accounting period.