Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Adjusting entry for depreciation expense (https://www.askmehelpdesk.com/showthread.php?t=260889)

  • Sep 15, 2008, 09:19 PM
    NEBRASKAFOREVER
    Adjusting entry for depreciation expense
    What is the effect of the adjusting entry for depreciation expense?
  • Feb 21, 2010, 10:09 AM
    blue but girl

    Does the recording of an adjusting entry for depreciation have the same effect as recording an adjusting entry for an accured expense?
  • Jul 22, 2011, 09:29 PM
    antigua
    An accrued expense
  • Jul 22, 2011, 09:31 PM
    antigua
    A prepaid expense
  • Jul 23, 2011, 06:32 AM
    pready

    A prepaid expense is an asset because you have not incurred the expense yet.

    For example when you purchase insurance you record the purchase as a prepaid expense because you have not used the insurance yet. You have purchased the insurance to be used later.

    As you use the insurance you will have to transfer a portion that is in prepaid expense to your expense account.

  • All times are GMT -7. The time now is 10:55 AM.