71) When an asset expires or is used up, it becomes an expense.

 

72) If an adjustment to Supplies is not made, the balance in the Supplies account will be too low.

73) Rent expired at the end of an accounting period requires an adjustment.

 

74) The original cost of equipment is reduced by the amount of Depreciation Expense.

 

75) The spreading or allocating of the cost of a long-term asset is called depreciation.

 

76) Accumulated Depreciation is a contra-asset account.

 

77) The worksheet contains a trial balance.

 

78) Depreciation Expense is debited when recording the depreciation for the period.

 

79) The use of straight-line depreciation results in equal amounts of depreciation being taken over a period of time.

80) Prepaid Rent is an asset with a normal balance of a debit.

 

 

 



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