On the Completed Work Sheet,which Set of Columns Usually Should

question 77

Multiple Choice

On the completed work sheet,which set of columns usually should be out of balance after the initial footing?

• A)Both Income Statement and Balance Sheet columns
• B)Balance Sheet columns only
• C)Income Statement columns only
• D)Adjusted Trial Balance columns only

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Definitions:

Straight-line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of an asset.

Depreciable Assets

Assets whose cost is allocated over their useful lives due to usage, wear and tear, or obsolescence.

Annual Depreciation

The portion of an asset's cost that is allocated as an expense each year over its useful life through the process of depreciation.

Salvage Values

Salvage Values represent the estimated residual value of an asset after its useful life has ended and it has been fully depreciated.