Bringing Account Balances Up to Date Before Preparing Financial Reports

question 136

Multiple Choice

Bringing account balances up to date before preparing financial reports is called

• A) posting.
• B) adjusting.
• C) journalizing.
• D) analyzing.

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Definitions:

Depreciable Cost

The total amount that an asset can be depreciated over its useful life, subtracting any salvage value from the asset's initial cost.

Estimated Useful Life

The expected period of time during which an asset is useful to the owner and can generate revenue.

Initial Cost

The initial expenditure to acquire an asset or start a project, including purchase price, installation fees, and other upfront costs.

Double-Declining-Balance Method

A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.