Question

Kwan has $10,000 in interest expense; an expired $5,000 insurance policy; $20,000 in depreciation and he paid himself a dividend. what is the only item with no entry in assets on his balance sheet?

Answer 1

The only item with no entry in assets on his balance sheet is B) the interest expense.

When is an accounting entry for assets made?

The accounting entry for assets is made when an asset increases or decreases in value.

For instance, the interest expense may not necessarily affect the assets because it is not stated if it has been paid in cash or not.  However, the expired insurance policy, depreciation, and payment of dividends affect these asset accounts:

• Prepaid Insurance,
• Long-term asset
• Cash.

Answer Options:

A) the expired insurance policy

B) the interest expense

C) the depreciation

D) the dividend

Thus, the only item with no entry in assets on his balance sheet is B) the interest expense.

Learn more about assets and balance sheets at brainly.com/question/24534918

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