Which of the Following Entries Is Correct to Record Depreciation

question 49

Multiple Choice

Which of the following entries is correct to record depreciation expense of Assembly Department?

• A)Debit: Work in Process-Assembly
• B)Debit: Work in Process-Assembly
• C)Debit: Finished Goods
• D)Debit: Accumulated Depreciation

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Definitions:

Payment of Account

The process of settling an amount owed to a creditor or vendor, often referred to as making a payment on an account.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable within a period.

Days' Sales in Receivables

A financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Industry Average Turnover

A measure comparing a company's sales or revenues relative to the average of its industry, indicating how efficiently a company is utilizing its assets.