When a Company Records Depreciation It Debits

question 142

Multiple Choice

When a company records depreciation it debits:

• A)liabilities and credits expenses.
• B)expenses and credits cash.
• C)expenses and credits a contra-asset account.
• D)long-lived assets and credits expenses.

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Definitions:

Factor of Production

A resource utilized in the creation of goods and services that encompasses labor, capital, land, and entrepreneurship.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs produced to inputs used.

Hourly Wage

The hourly wage an employee receives for their work.