PRC-1 · Chapter 6 · Question 80 of 100
If an asset's unadjusted trial balance shows an 'Accumulated Depreciation' balance of Rs. 40,000, this figure represents:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The total depreciation charged in all prior years, excluding the current year's adjustment.
Explanation
In an unadjusted trial balance, the accumulated depreciation figure is simply the balance brought forward from previous periods. The current year's depreciation expense is recorded during the period-end adjustment phase.
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