The Accumulated Depreciation Account

question 99

Multiple Choice

The Accumulated Depreciation account:

• A) is another term for depreciation expense.
• B) represents the original cost of the cost.
• C) is a contra asset account.
• D) has a normal balance which is the same as its companion account.

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Definitions:

Economy

A system of production, distribution, and consumption of goods and services within a certain geographical area or country.

Goods Produced

Refers to the outcomes of manufacturing or production processes within an economy, encompassing both tangible products and intangible services.

Value Created

The difference between the value of an entity's outputs and the cost of inputs used, indicating the economic value added by the entity.

Capital Investment

Funds expended by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.