Asked by Mason Smith on Jun 04, 2024
Verified
Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet?
A) Balance Sheet and Statement of Retained Earnings-Credit and Income Statement-Credit.
B) Balance Sheet and Statement of Retained Earnings-Debit and Income Statement-Debit.
C) Income Statement-Debit and Income Statement-Credit.
D) Balance Sheet and Statement of Retained Earnings-Debit and Balance Sheet and Statement of Retained Earnings-Credit.
E) Balance Sheet and Statement of Retained Earnings-Debit; and Income Statement-Credit.
Accumulated Depreciation
The total amount of a tangible asset's cost that has been allocated as depreciation expense since it was put into use, reflecting usage or wear and tear.
Service Fees Earned
Service fees earned refer to revenues a company generates from providing services to clients or customers, as opposed to selling physical goods.
Work Sheet
A paper or electronic document used by accountants to compile and analyze financial information prior to preparing financial statements.
- Comprehend the process of preparing financial statements from a worksheet.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
A
Explanation :
Accumulated Depreciation is a contra asset account and appears on the credit side of the Balance Sheet. Service Fees Earned is revenue and appears on the credit side of the Income Statement.
Learning Objectives
- Comprehend the process of preparing financial statements from a worksheet.