The entry to record depreciation expense at the end of an accounting period( ).
A: reduces the book value of the asset being depreciated
B: is an example of an accrual
C: reduces the balance in a contra asset acount
D: increased the depreciable cost of the asset being depreciated
A: reduces the book value of the asset being depreciated
B: is an example of an accrual
C: reduces the balance in a contra asset acount
D: increased the depreciable cost of the asset being depreciated
举一反三
- The term accumulated depreciation, as used in accounting, is best defined as A: the portion of a plant asset recognized as expense since the asset was acquired. B: funds (or cash) set aside to replace the asset being depreciated. C: earnings retained in the business that will be used to purchase another asset when the present asset is depreciated. D: an expense of doing business.
- Depreciation is the systematic allocation of the depreciable amount of an asset over the asset's useful life.
- What is the purpose of charging depreciation in accounts? A: To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B: To ensure that funds are available for the eventual replacement of the asset C: To reduce the cost of the asset in the statement of financial position to its estimated market value D: To account for the 'wearing-out' of the asset over its life
- Accumulated depreciation is shown on the balance sheet as a subtraction fromthe cost of its related asset
- The units-of-production method of depreciation charges a constant amount of expense for each period of an asset's useful life.