Which Statement Is Correct

question 87

Multiple Choice

Which statement is correct?

• A) Accumulated Depreciation should always have a debit balance in the adjusted trial balance.
• B) Accumulated Depreciation is added to the long-term liabilities on the balance sheet.
• C) Accumulated Depreciation, Equipment represents the total cost of equipment that has expired up to the date of the balance sheet.
• D) Accumulated Depreciation is used to reveal the value of the related asset on the date of the balance sheet.

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Definitions:

Goods

Tangible personal property, which includes physical items that can be seen, touched, and possessed.

Conflicting Interests

Situations where competing priorities or obligations cause a conflict for an individual or organization, potentially leading to ethical dilemmas.

Perfected

In legal terms, it refers to a state where an interest (such as a lien or security interest) is made legally enforceable and established in a manner that it has priority over the claims of others.

Collateral

Assets that are pledged as security for the repayment of a loan.