Depreciation

question 52

Multiple Choice

Depreciation

• A)is calculated by the department that uses the fixed asset
• B)allocates the cost of the asset over its useful life
• C)is recorded weekly
• D)results in book value approximating fair market value

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for accruals, deferrals, and errors, serving as the basis for preparing financial statements.

Ledger Accounts

Individual accounts within the general ledger, detailing transactions related to a specific asset, liability, equity, revenue, or expense.

Financial Statements

Reports that provide an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.

Bank Loan Payable

This term represents the amount owed by an individual or an entity to a bank as a result of borrowing funds, typically subject to specified repayment terms and interest.