The adjusting entry to record the depreciation of equipment for the fiscal period is
A) debit Depreciation Expense; credit Equipment
B) debit Depreciation Expense; credit Accumulated Depreciation
C) debit Accumulated Depreciation; credit Depreciation Expense
D) debit Equipment; credit Depreciation Expense

Question

Quizplus · Accepted Answer

Depreciation is the systematic allocation of the cost of an asset over its useful life. Accumulated Depreciation is a contra asset account that is used to record the portion of an asset's cost that has been depreciated. At the end of the fiscal period, the adjusting entry to record depreciation would be to debit Depreciation Expense (an income statement account) and credit Accumulated Depreciation (a balance sheet account). This entry recognizes the expense for the period and reduces the carrying value of the asset on the balance sheet.

The Adjusting Entry to Record the Depreciation of Equipment for the Fiscal