Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account?
A)The prior year's depreciation charges were erroneously understated.
B)There were numerous fixed asset retirements during the year.
C)There were numerous fixed asset purchases during the year.
D)A reserve for possible loss on retirement has been recorded.

Question

Quizplus · Accepted Answer

Debits to accumulated depreciation typically occur when fixed assets are retired, as the accumulated depreciation associated with those assets is removed from the account.

Which of the Following Explanations Might Satisfy an Auditor Who