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pearljam10
Major Contributor

Joined: 28 Jan 2010
Online Status: Offline
Posts: 440

Posted: 20 Sep 2010 at 15:00 \| IP Logged

when a question asks for a balance sheet account that is releated. For example, nachine and accumulated depreciation. Is that the balance?

Interpol CPA
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Joined: 20 Aug 2010
Location: United States
Online Status: Offline
Posts: 203

Posted: 21 Sep 2010 at 00:14 \| IP Logged

Machine and accumulated depreciation for that machine would be considered related accounts. The Machine balance minus the accumulated depreciation balance would be the NET balance.

Technically speaking, the accumulated depreciation is a contra asset account, since it reduces the related asset account but is not a "true" liability.

Wait...is this even what you were asking?

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