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.
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.
举一反三
- 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
- In order to convert the average annual net cash inflow from the asset back to the average annual operating income from the asset, one must ( ) A: subtract annual depreciation expense B: add annual depreciation expense C: multiply by annual depreciation expense D: divide by annual depreciation expense
- The purchase of office supplies on account will: （ ）. A: Increase an asset and decrease a liability B: Increase one asset and decrease another asset C: Increase an asset and increase a liability D: Decrease an asset and decrease a liability
- An asset is ________ when another asset can do the job more efficiently.
- The book value of a plant asset is defined as: