Answers

Question and Answer:

  Home  Management Accountant

⟩ Tell me why some asset accounts have a credit balance?

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

 217 views

More Questions for you: