When Depreciation Is Recorded on Equipment, Depreciation Expense Is Increased

question 59

True/False

When depreciation is recorded on equipment, Depreciation Expense is increased, and the Equipment account is decreased.

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Definitions:

Lump Sum

A one-time payment for the total amount due, rather than breaking the payment into smaller installments.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually added to the price of the goods or service.

Indifference Curve

An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility.

Normal Good

A good for which demand increases when income increases and falls when income decreases, all other factors being equal.