Accounting Multiple Choice Question – 17 November 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Any balance brought down on a provision for depreciation account . . .

Select ONE answer:

  1. should be included in the trial balance as a debit balance.
  2. should be included in the trial balance as a credit balance.
  3. should sometimes be included in the trial balance as a debit balance and sometimes as a credit balance.
  4. should not be included in the trial balance at all.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not Correct
  2. The cost of any particular category of fixed asset is shown in the trial balance as a debit balance. In order that the net book value of these assets be shown in the balance sheet. as a debit, the total depreciation charged to date on that particular category of fixed assets must be netted off against the balance on the related fixed asset account. Therefore, the balance brought down on any provision for depreciation account must be a credit balance. All ledger account balances, whether debit or credit, should be included in the trial balance.
  3. Not Correct
  4. Not Correct

 

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