A New Accountant Working for Brady Company Records $700 Depreciation $\begin{array}{lrr} \text {Dr. \quad Depreciation Expense } &700\\ \text { Cr. \quad Cash} &&700\\\end{array}$

question 52

Multiple Choice

A new accountant working for Brady Company records $700 Depreciation Expense on store equipment as follows: $\begin{array}{lrr} \text {Dr. \quad Depreciation Expense } &700\\ \text { Cr. \quad Cash} &&700\\\end{array}$
The effect of this entry is to

• A) adjust the accounts to their proper amounts on December 31.
• B) understate total assets on the balance sheet as of December 31.
• C) overstate the book value of the depreciable assets at December 31.
• D) understate the book value of the depreciable assets as of December 31.

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Definitions:

Cumulative Probability Distribution

A function that gives the probability that a random variable is less than or equal to a certain value.

Monte Carlo Analysis

A statistical technique that uses random sampling and simulation to estimate the probability of different outcomes in a process or decision-making.

Random Number Range

The interval within which random numbers can be generated, used in simulations and probabilistic models to represent unpredictable variables.

Monte Carlo Analysis

A computational algorithm that uses random sampling to obtain numerical results, typically used to solve problems that might be deterministic in principle.