Asked by Simran Singh on Jun 06, 2024
Verified
A contra asset account for Land will normally appear on the balance sheet.
Contra Asset
An account on a company's balance sheet that reduces the value of a related asset account.
Balance Sheet
A financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.
- Pinpoint and explicate the customary classes of accounts that are influenced by adjusting entries, encompassing assets, liabilities, revenues, and expenses.
Verified Answer
TB
Tianna BattlesJun 12, 2024
Final Answer :
False
Explanation :
A contra asset account is used to reduce the value of an asset on the balance sheet. However, land is not subject to depreciation or amortization and its value generally increases over time. Therefore, a contra asset account for land is not necessary and will not appear on the balance sheet.
Learning Objectives
- Pinpoint and explicate the customary classes of accounts that are influenced by adjusting entries, encompassing assets, liabilities, revenues, and expenses.