Questions
ACCT*2200*W04 midterm- Requires Respondus LockDown Browser
Single choice
Which of the following statement is correct?
Options
A.Accumulated Depreciation-Equipment is not a contra account.
B.None of the other three.
C.Accumulated Depreciation-Equipment is a contra account, and it is contrary to Depreciation Expense-Equipment.
D.Dividend is a contra account, and it is contrary to retained earnings.
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Step-by-Step Analysis
The question asks to identify which statement is correct among the given options.
Option A: 'Accumulated Depreciation-Equipment is not a contra account.' This is inaccurate. Accumulated Depreciation-Equipment is indeed a contra-asset account that offsets the Equipment asset account to reflect the reduction in carrying value due to depreciation.
Option B: 'None of the other three.' This would be correct only if......Login to view full explanationLog in for full answers
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