Depreciation in Accounting Records the Decrease in Value of an Asset.Depreciation

question 102

True/False

Depreciation in accounting records the decrease in value of an asset.Depreciation in accounting is the process of allocating to expense the cost of an asset over its service life.

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Definitions:

Perpetual Inventory System

An inventory management method where stock levels are updated in real-time with every sale or purchase.

Merchandise

Goods that are bought and sold as part of business operations, typically in a retail or wholesale setting.

Credit

Credit refers to the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Return of Merchandise

This is when customers return purchased goods to the seller, usually due to defects, dissatisfaction, or the desire for an exchange or refund.