When a Company Records Depreciation It Debits

question 99

Multiple Choice

When a company records depreciation it debits:

• A)a liability account and credits Depreciation Expense.
• B)Depreciation Expense and credits Cash.
• C)Depreciation Expense and credits a contra-asset account.
• D)a long-lived tangible asset account and credits Depreciation Expense.

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Definitions:

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes and is instead saved.

Closed Economy

An economic system that does not engage in international trade but relies entirely on its own resources and production.

Taxes Minus Transfers

The net amount individuals pay to the government after accounting for government transfers received, such as social security and unemployment benefits.

Loanable Funds

The funds available in the financial markets for borrowing, influenced by savings, the policy rate, and other factors.