In Preparing an Adjusting Entry for Depreciation, an Accountant Debited

question 54

Multiple Choice

In preparing an adjusting entry for depreciation, an accountant debited depreciation expense and credited accumulated depreciation $500. The adjusting entry means (i) the value of the equipment decreased by $500, (ii) future periods will not benefit from the use of the equipment.

• A) Neither i nor ii.
• B) Both i and ii.
• C) i only.
• D) ii only.

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Definitions:

Organic Compound

Chemical compounds that contain carbon and hydrogen, often containing other elements like nitrogen, oxygen, sulfur, and phosphorus, essential to life.

Reaction Structure

The graphical representation of the molecular arrangement and bonds between atoms before and after a chemical reaction.

Organic Product

A compound primarily made of carbon atoms obtained as a result of an organic reaction.

Reaction Structure

The arrangement and connectivity of atoms within the products and reactants of a chemical reaction.