Accounting Manager Question:
Download Job Interview Questions and Answers PDF
Why some asset accounts have a credit balance?
Answer:
Some asset accounts have a credit balance due to following reasons,
☛ Receiving and posting an amount that was higher than the recorded receivable
☛ Expenses occurred faster than the agreed upon prepayments
☛ An error caused by posting an amount to a wrong account
☛ The amount of checks written exceeded the positive amount in the Cash account
☛ Continuing to amortize or depreciate an asset after its balance has reached zero
☛ Receiving and posting an amount that was higher than the recorded receivable
☛ Expenses occurred faster than the agreed upon prepayments
☛ An error caused by posting an amount to a wrong account
☛ The amount of checks written exceeded the positive amount in the Cash account
☛ Continuing to amortize or depreciate an asset after its balance has reached zero
Download Accounting Manager Interview Questions And Answers
PDF
| Previous Question | Next Question |
| What is the difference between depreciation and amortization? | What are the activities that includes in Cash Flow Statement? |