Respuesta :
An Accumulated Depreciation Credit and a Depreciation Expense Credit are both included in the adjusting entry to reflect equipment depreciation.
In the accounting period in which a long-term asset is acquired, it should be capitalized as opposed to being expensed. Expensing an asset right away would result in an overestimation of the equipment depreciation in the current period and an underestimation of the expense in all subsequent periods, assuming the asset is economically viable and generates returns beyond the first accounting period. Depreciation Expense is used to better match a long-term asset's expense to the time it provides benefits or to the revenue it generates in order to prevent this from happening.
Depreciation Expense is calculated using a variety of approaches, and the type is typically chosen to reflect the equipment depreciation characteristics. Vehicles, for instance, are assets that depreciate significantly more quickly in the first few years; as a result, an accelerated depreciation approach is frequently used.
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The complete question is
The adjusting entry to record deprecation on equipment includes a _______. (Select all that apply)
a. debit to Accumulated Depreciation
b. credit to Equipment
c. credit to Depreciation Expense
d. credit to Accumulated depreciation
e. debit to Depreciation Expense
f. credit to Cash
