Recording the Adjusting Entry for Depreciation Has the Same Effect

question 90

Multiple Choice

Recording the adjusting entry for depreciation has the same effect as recording the adjusting entry for

• A) an unearned revenue.
• B) a prepaid expense.
• C) an accrued revenue.
• D) an accrued expense.

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Definitions:

Special Order

A one-time or unusual order for products or services, often requiring customization or a departure from standard production processes.

Fixed Costs Per Unit

Fixed costs per unit decrease as production increases because the total fixed costs are spread over a larger number of units.

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.