The Process of Transferring the Cost of an Asset to an Expense

question 121

Multiple Choice

The process of transferring the cost of an asset to an expense account is called all of the following except

• A) depletion
• B) allocation
• C) amortization
• D) depreciation

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Definitions:

Unexpired Insurance

The portion of an insurance premium that has not yet been used up and is considered a prepaid expense for the company.

Supplies Expense

The cost associated with consumable items or supplies used during a company's operations within an accounting period.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Debit

An entry on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.