Which of the following accounts does NOT belong on the asset side of a balance s

Question

Which of the following accounts does NOT belong on the asset side of a balance sheet? A. Cash
B. Accounts Receivable
C. Accumulated Depreciation
D. Accruals

I know cash and A/R go there but I am confused. In accrual accounting isn't an accrual on both sides? Also - accumulated depreciation - goes on asset side as a debit - yes? Help!

Which of the following does NOT belong in the liability section of a balance sheet?
A. Accumulated depreciation
B. Long term debt
C. Accruals
D. Accounts Payable

Again - I am confused. I know that long term debt and A/P go here but same question applies about accrual accounting and accrued expenses do go on this side. I am so confused.

Thanks

Explanation / Answer

For the first question accruals do not belong on the liability side. Accrued expenses are on the liability side as they are expenses where the company received the benefit but did not pay out the cash yet for them. For the second question, you are correct again. LT Debt, accruals and A/P are all liabilities while Accumulated depreciation is an asset account. Hope that helps!

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