In Accounting,depreciation Is The

question 51

Multiple Choice

In accounting,depreciation is the:

• A)sale of an asset.
• B)estimation of an asset's current value.
• C)method of spreading the cost of an asset over its useful life.
• D)decline in market value of an asset.

---

Definitions:

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so that they comply with the accrual concept.

Journal Entries

Records of financial transactions in the order they occur, which are then posted to the appropriate accounts.

Debits

Entries in accounting that increase an asset or expense account, or decrease equity, liability, or revenue accounts.

Credits

Accounting entries that represent an increase in liabilities or revenues, or a decrease in assets or expenses.