The Accumulated Depreciation Account Allows Us to Reduce the Carrying

question 28

True/False

The Accumulated Depreciation account allows us to reduce the carrying value of assets through depreciation,while maintaining the original cost of each asset in the accounting records.

---

Definitions:

Periodic Inventory System

An inventory management system where the inventory count is conducted at specific intervals to determine the cost of goods sold.

Discount Period

The time frame in which a discount is offered for prompt payment of an invoice, encouraging early payment by customers.

Shrinkage

The loss of inventory that can occur from theft, damage, or errors in the counting or recording of stock.