Annual depreciation and accumulated depreciation are most likely classified as which financial statement elements? Depreciation Accumulated depreciation Expenses Contra liabilities Liabilities Contra assets Expenses Contra assets

Annual depreciation and accumulated depreciation are most likely classified as which financial statement elements? Depreciation Accumulated depreciation Expenses Contra liabilities Liabilities Contra assets Expenses Contra assets

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 9DQ

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Question

12. Annual depreciation and accumulated depreciation are most likely classified as which financial statement elements?

Depreciation Accumulated depreciation

Expenses Contra liabilities
Liabilities Contra assets
Expenses Contra assets

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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