The Journal Entry to Record Depreciation Expense Is

question 154

Multiple Choice

The journal entry to record depreciation expense is:

• A)debit Depreciation Expense, credit the asset account.
• B)debit Accumulated Depreciation, credit the asset account.
• C)debit the asset account, credit Accumulated Depreciation.
• D)debit Depreciation Expense, credit Accumulated Depreciation.

Comprehend the importance of inventory management and classification in reducing costs.

Recognize the significance of liquid assets in a company’s inventory.

Understand different financial instruments associated with credit sales and purchases.

Grasp the economic order quantity (EOQ) model and its use in minimizing inventory costs.

---

Definitions:

Unit Sales

The total number of individual items or products sold by a company in a specific period.

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, highlighting the impact of fixed costs on profitability.

Net Operating Income

A company's income after operating expenses are subtracted but before interest and taxes are deducted.

Percentage Change

A mathematical calculation that represents the degree of change over time, usually expressed as a percent.