36. 37. 38. With respect to company's car 'depreciation expense' account, which of the following statements is correct? A. B. C. DE D. E. The balance on the account is off-set against the cost of cars that the company owns to give the net book value of cars in the balance sheet. It reflects that part of a company's cars that have been expensed since the cars were purchased. It reflects the amount of depreciation charged on company cars in the current accounting period. It appears as a liability in the balance sheet. None of the above statements are correct. The ABC company pays its salaried staff $40,000 every 10 working days (i.e. every 2 weeks). If the company's year end were to fall four working days following the last payment made to salaried employees, the following salaries adjusting entry would have to be made: ABCDE A. Debit Salaries Prepaid $16,000; Credit Accrued Salaries $16,000 B. Debit Salary Expense $16,000; Credit Accrued Salaries $16,000 Debit Accrued Salaries $16,000; Credit Salary Expense $16,000 Debit Accrued Salaries $16,000; Credit Salaries Prepaid $16,000 E. None of the above. C. D. Which of the following accounts will have a zero balance following the completion of financial year end closing entries? A. Office supplies. B. ABCDE Accumulated depreciation. C. Prepaid rent. E. Allowance for doubtful accounts. Depreciation expense.