Depreciation and Contra-Asset Accounts

Why Adjusting Entries ExistPrev Preparing and Reading the Trial BalanceNext

You'll learn how straight-line depreciation is calculated and recorded, why accumulated depreciation is a contra-asset account rather than a direct reduction to the asset, and how this distinction commonly trips up exam-takers who haven't seen it explained clearly before.

Foundations of Bookkeeping

The Accounting Equation and Double-Entry System Debits, Credits, and the Five Account Types The Chart of Accounts Journals and the General Ledger

Recording Transactions Accurately

Cash vs. Accrual Basis Accounting Recording Sales and Accounts Receivable Recording Purchases and Accounts Payable Bank Reconciliation Step by Step

Adjusting Entries and the Trial Balance

Why Adjusting Entries Exist Depreciation and Contra-Asset Accounts Preparing and Reading the Trial Balance

Inventory and Cost Accounting Basics

Inventory Costing Methods: FIFO, LIFO, and Weighted Average Recording Inventory Transactions Cost of Goods Sold Calculations

Financial Statement Preparation

Building the Income Statement Building the Balance Sheet The Closing Process

Payroll Accounting

Gross Pay, Net Pay, and Withholding Employer Payroll Taxes: FICA, FUTA, and SUTA Recording Payroll Journal Entries

Exam Readiness and Practice

Common CPB Exam Traps and How to Avoid Them Putting It Together: A Full Bookkeeping Cycle Walkthrough Where to Go Next: Practice Questions and the Exam Itself