Which Account Is Credited in the Adjusting Entry to Allocate

question 69

Multiple Choice

Which account is credited in the adjusting entry to allocate the cost of equipment?

• A)Equipment Expense
• B)Depreciation Expense-Equipment
• C)Accumulated Equipment
• D)Accumulated Depreciation-Equipment

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Definitions:

Illusory Promises

Commitments made in a contract that are vague or unenforceable because they do not bind the promisor to a specific action.

Mutuality of Benefit

The principle that both parties involved in a contract or agreement must stand to gain from the arrangement for it to be valid and enforceable.

Promissory Estoppel

A legal principle that prevents a person from going back on a promise, even if it was not a formal contract, when the other party has relied on that promise to their detriment.

Legal Detriment

A loss or disadvantage that occurs to one party in a contract, considered a necessary component for a valid contractual agreement.