Why Is the Balance in the Depreciation Expense Account Generally

question 40

Multiple Choice

Why is the balance in the Depreciation Expense account generally different from the balance in the Accumulated Depreciation account?

• A)The adjusting entry contains a different amount for Depreciation Expense and Accumulated Depreciation.
• B)The Accumulated Depreciation account contains the value of the long-lived asset as well as the depreciation.
• C)Depreciation expense only reflects the current period depreciation.Accumulated Depreciation contains depreciation since the asset was purchased.
• D)The balances in the two accounts should be the same amount.

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Definitions:

Tibia

A large bone in the lower leg, known as the shinbone, that bears most of the body's weight.

Fibula

A slender bone located on the lateral side of the tibia in the lower leg, playing a role in stabilizing the ankle and supporting lower leg muscles.

Pubic Arch

The angle at the bottom of the pelvis formed by the pubic bones, which is wider in females.

Coccyx

The small, triangular bone at the base of the vertebral column, composed of three to five fused vertebrae, commonly known as the tailbone.