A Company Determines That Depreciation Expense for the Year Is

question 28

Multiple Choice

A company determines that depreciation expense for the year is $25 000, 10% of the cost of their non-current assets. The journal entry to record this adjustment would include:

• A)a debit to accumulated depreciation expense for $25 000.
• B)a credit to accumulated depreciation for $25 000.
• C)a debit to depreciation expense for $2 500.
• D)a credit to depreciation expense for $2 500.

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Definitions:

Female to Male Earnings Ratio

The comparison of the average earnings of women to the average earnings of men in the workforce, often used to evaluate gender wage gaps.

Long-Run Adjustment

Changes in production or operations that a firm can undertake over time to adapt to new conditions, typically involving capital investment.

Assembly-Line Plant

A manufacturing facility where products are assembled in a sequential manner along a conveyor belt or line.

Average Variable Cost (AVC)

The cost per unit produced that varies, found by dividing the total variable expenses by the amount of output generated.