Which Statement Relating to the Accumulated Depreciation Account Is Correct

question 29

Multiple Choice

Which statement relating to the accumulated depreciation account is correct?

• A) It normally has a debit balance.
• B) It reflects the portion of the cost of the asset that has been assigned as an expense since purchase.
• C) It provides information on the market value of the asset.
• D) It is classified as a liability in the balance sheet.

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Definitions:

Permanent Income Hypothesis

The theory that an individual's consumption patterns are based on their long-term income expectations rather than their current income.

Income Distribution

How wealth and income are shared among a population, often analyzed for insights into economic inequality.

Minimum-wage Laws

Legislation that sets the lowest legal wage that can be paid to workers, aiming to ensure a minimum standard of living for employees.

Unskilled Labor

Labor that requires no specialized skills, education, or training to perform, often associated with lower wages.