Accumulated Depreciation Is an Account Which

question 20

Multiple Choice

Accumulated depreciation is an account which:

• A)adjusts plant and equipment so that its balance sheet value approximates its replacement cost.
• B)is a long-term liability.
• C)is equal to total depreciation expense recorded and decreases total plant and equipment.
• D)reduces intangible assets.

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Definitions:

Contingent Consideration

An obligation of a buyer to transfer additional assets or equity interests if future events occur or conditions are met after a business combination.

Acquisition Business Combination

A transaction or event in which one entity obtains control over one or more other businesses, leading to the combination of those entities into one reporting entity.

Transaction

An agreement between two parties to exchange goods, services, or financial instruments.