PRC-1 · Chapter 6 · Question 39 of 100
An accountant extracts an unadjusted trial balance. The Accumulated Depreciation account shows a credit balance. This balance represents:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The total depreciation charged on the asset since it was purchased, up to the end of the previous accounting period.
Explanation
In an unadjusted trial balance, the Accumulated Depreciation account shows the sum of all depreciation charged in prior years. The current year's expense has not yet been added during adjusting entries.
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