PRC-1 · Chapter 6 · Question 19 of 100
The double-entry to record the annual depreciation charge for the year is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Depreciation Expense, Credit Accumulated Depreciation
Explanation
Depreciation is an expense, so the Depreciation Expense account is debited. It reduces the carrying amount of the asset via a contra-asset account, so Accumulated Depreciation is credited.
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