4 Quiz Question 2 (of 6) value: 0.83 points MC Qu. 117 Why is the balance in the

Question

4 Quiz Question 2 (of 6) value: 0.83 points MC Qu. 117 Why is the balance in the Depreciation. Why is the balance in the Depreciation Expense account generally different from the balance in the Accumulated Depreciation account? O The adjusting entry contains a different amount for Depreciation Expense and Accumulated Depreciation. O The Accumulated Depreciation account contains the value of the long-lived asset as well as the depreciation. O Depreciation expense only reflects the current period depreciation. Accumulated Depreciation contains depreciation since the asset was purchas O The balances in the two accounts should be the same amount References MC Qu. 117 Why is the belance in the Depreciation Multiple Choice

Explanation / Answer

The depreciation expense account reflect only the current period depreciation, but the accumulated depreciation account will reflect the entire amount of depreciation since the asset placed into service. In balancesheet the fixed asset shows after deducting the accumulated depreciation from the total value of that particular fixed asset.

Please find the Journal entry below.

Deprecation expense a/c Dr.

To Accumulated depreciation a/c Cr.

Hence the 3rd Option is the correct answer for this question.

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