Depreciation of a Long-Lived Asset Is the Process of

question 45

Multiple Choice

Depreciation of a long-lived asset is the process of

• A) valuing a long-lived asset at its fair value.
• B) increasing the cost of a long-lived asset over the periods the asset benefits.
• C) allocating the cost of a long-lived asset to an expense over the periods the asset provides a benefit to the entity.
• D) writing down a long-lived asset to its real value each accounting period.

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Definitions:

Adjusted Trial Balance

A statement prepared after adjusting entries are made, used to verify the balance of debits and credits before preparing financial statements.

End-of-period Spreadsheet

A tool used in accounting to gather all the financial data and adjustments needed to prepare financial statements at the end of an accounting period.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.

Adjustments Column

A column in accounting ledgers or tables used to record changes or corrections to initial entries prior to preparing financial statements.