Select the Incorrect Statement Regarding the Recognition of Depreciation on Manufacturing

question 146

Multiple Choice

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

• A) Recognizing depreciation on manufacturing equipment is an asset exchange event.
• B) Depreciation on manufacturing equipment is an indirect product cost.
• C) Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the Manufacturing Overhead account.
• D) If the equipment was used to work on a job, the amount of depreciation must be entered on the appropriate job cost sheet.

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Definitions:

Ferdinand of Aragon

Was a monarch of the late 15th and early 16th centuries, who, along with his wife Isabella of Castile, is famous for the completion of the Reconquista and the funding of Christopher Columbus's 1492 voyage.

United

Refers to entities or individuals joined together towards a common goal or forming a single entity.

Medieval Weapon

Weapons used during the Middle Ages in Europe, including swords, bows, spears, and various types of siege engines.

Gunpowder

Gunpowder is a chemical explosive made from sulfur, charcoal, and potassium nitrate, playing a crucial role in the development of firearms and artillery in warfare.