What Would Be the Appropriate Journal Entry to Adjust to the Accrual

question 140

Multiple Choice

What would be the appropriate journal entry to adjust to the accrual basis of accounting for depreciation in prior years?

• A) Debit Depreciation expense, Credit Accumulated Depreciation.
• B) Debit Net Assets, Credit Accumulated Depreciation.
• C) Debit Accumulated Depreciation, Credit Net Assets.
• D) Debit Machinery, Credit Accumulated Depreciation.

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Definitions:

Wrongful Acts

Actions that are illegal or immoral, causing harm or damage to others.

Limited Liability Company

A type of business structure where owners have limited personal liability for the debts and actions of the company.

Legal Person

An individual or organization that has legal rights and obligations, capable of entering into legal contracts, and can sue or be sued.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.