How Does the Adjustment for Depreciation Differ from Other Deferral

question 188

Multiple Choice

How does the adjustment for depreciation differ from other deferral adjustments?

• A)The depreciation adjustment results in an increase to a long-lived asset account,while the other deferral adjustments reduce asset accounts.
• B)The depreciation adjustment uses a contra-asset account rather than reducing the asset account directly.
• C)The depreciation adjustment increases a liability account rather than reducing an asset account directly.
• D)The depreciation adjustment is not a deferral adjustment,but rather an accrual adjustment.

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Definitions:

Law of Heredity

Describes the principles guiding how traits are passed from parents to offspring, traditionally referenced in the context of genetics and biological inheritance.

Uniformitarianism

The geological principle suggesting that the same processes and natural laws that operate in the universe now have always operated in the past.

Natural Selection

A fundamental mechanism of evolution, where organisms better adapted to their environment tend to survive and produce more offspring.