The Adjusting Entry for Depreciation Would Include A

question 5

Multiple Choice

The adjusting entry for depreciation would include a:

• A)debit to Accumulated depreciation and a credit to the asset.
• B)debit to Depreciation expense and a credit to Accumulated depreciation.
• C)debit to Accumulated depreciation and a credit to Depreciation expense.
• D)debit to Depreciation expense and a credit to Cash.

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Definitions:

Maturity

Maturity refers to the date on which the principal or face value of a financial instrument, such as a bond or loan, becomes due and payable.

Debenture

A type of debt instrument not secured by physical assets or collateral but based on the creditworthiness and reputation of the issuer.

Collateralized

Secured by an asset or property as a guarantee for the repayment of a loan.

Sinking Fund

A reserved fund into which an organization sets aside money over time, to repay debt or replace a significant asset in the future.