The Entry to Record Depreciation Includes a Credit to Which

question 84

Multiple Choice

The entry to record depreciation includes a credit to which account?

• A) Equipment
• B) Cash
• C) Accumulated depreciation
• D) Depreciation expense

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Definitions:

Note Payable

A written promise to pay a specified amount of money, typically with interest, at a future date or dates.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Quick Ratio

A liquidity measure that evaluates a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.