The Journal Entry to Record an Addition to an Office

question 21

Multiple Choice

The journal entry to record an addition to an office building would include:

• A) credit to depreciation expense.
• B) credit to accumulated depreciation.
• C) debit to repair expense.
• D) debit to office building.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

Balance Sheet Accounts

Accounts found on the balance sheet that include assets, liabilities, and shareholders' equity, reflecting the company's financial position at a specific point in time.

Major Sections

Main divisions within a document, report, or presentation that organize and categorize the content for easier understanding and navigation.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the company.