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Q7(12)PSA

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Financial & Managerial Accounting
Found in: Page 154
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

12. Accumulated depreciation—Trucks

The correct answer is C. Plant assets

See the step by step solution

Step by Step Solution

Definition of Accumulated depreciation

The accumulated amount of depreciation to be shown as the deduction from the book value of the asset at the time of the sale of the fixed asset is known as Accumulated depreciation of the asset.

Reason of choice

The accumulated depreciation of the truck is related to the plant (truck) of the organization, so it should be classified as the plant asset section of the balance sheet.

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