When a Company Recognises a Depreciation Credit Resulting from a Review

question 17

Multiple Choice

When a company recognises a depreciation credit resulting from a review of the estimated residual value of a depreciable asset,the depreciation debit should be recognised in accumulated depreciation and the depreciation credit should be recognised:

• A)in the opening balance of retained earnings
• B)in the current period depreciation expense
• C)directly in the depreciable asset account
• D)as a gain in the current period.

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Definitions:

Months of Age

A measurement of age used particularly in the context of very young children, expressing how many months old they are.

Sitting Up

The physical action of moving from a lying or slouching position to an upright posture, often indicating readiness or alertness.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed, a concept developed during infancy.

Peek-a-Boo

A game played with young children involving hiding and suddenly reappearing, aiming to invoke surprise and delight.