Which Account Is Credited in the Adjusting Entry to Allocate

question 174

Multiple Choice

Which account is credited in the adjusting entry to allocate the cost of equipment to an expense account?

• A)Equipment Expense
• B)Depreciation Expense
• C)Accumulated Equipment
• D)Accumulated Depreciation

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Definitions:

Purely Competitive

A market scenario where sellers sell identical products, and there is free entry and exit, ensuring no single seller can influence market prices.

Long Run

An interval in which every aspect of production and costs can vary, enabling modifications to all contributions.

Supply

The whole sum of a service or product that is up for sale at a certain price tier in a specific marketplace.

Decreasing-Cost Industry

An industry where the average cost of production decreases as the industry's output increases, often due to economies of scale.