Which of the Following Statements About Depreciation Is True

question 3

Multiple Choice

Which of the following statements about depreciation is true?

• A) The cash account is affected by depreciation charges.
• B) Accumulated depreciation represents the amount of an asset's cost that has been transferred to depreciation expense to date.
• C) Accumulated depreciation is shown in the financial statements as a contra-expense account.
• D) Depreciation represents the amount of cash available to replace assets when they wear out.