The Balance in the Accumulated Depreciation Account Represents the

question 76

Multiple Choice

The balance in the Accumulated Depreciation account represents the

• A)cash fund to be used to replace assets.
• B)amount to be deducted from the cost of the asset to arrive at its fair value.
• C)amount charged to depreciation expense in the current period.
• D)amount charged to depreciation expense since the acquisition of the asset.

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Definitions:

Credit Memo

A Credit Memo is a document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller, typically due to a return or an overpayment.

Perpetual Inventory

A system for managing inventory that instantly logs inventory sales or purchases via computerized point-of-sale systems and software for enterprise asset management.

Freight

The charge paid for transport of goods, typically either by land, sea, or air.

FOB Destination

A shipping term indicating that the sale is considered complete and the goods owned by the buyer upon arrival at the buyer's location.