The Adjusting Entry to Record the Depreciation of a Building

question 120

Multiple Choice

The adjusting entry to record the depreciation of a building for the fiscal period is

• A) debit Depreciation Expense; credit Building
• B) debit Depreciation Expense; credit Accumulated Depreciation
• C) debit Accumulated Depreciation; credit Depreciation Expense
• D) debit Building; credit Depreciation Expense

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Definitions:

Factor Prices

Prices paid for the use of factors of production, such as labor, land, and capital, important in understanding cost structures and economic value added.

Production Function

An economic model that describes the relationship between inputs used in production and the resulting output.

Average Cost

The total cost of production divided by the number of goods produced, also known as cost per unit.

Copper

A reddish-brown, malleable, ductile metallic element with high electrical and thermal conductivity, used in many alloys and as electrical conductors.