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Description: How should an expenditure for an ordinary repair to factory equipment be recorded? Question 10 options: Debited toaccumulated depreciation. Debited to an asset account but not depreciated over future years. As an expense in the periodincurred. Debit

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How should an expenditure for an ordinary repair to factory equipment be re accumulated depreciation. Debited to an asset account but not depreciated

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 9MC: If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it? A....

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question on, "what is depreciation".. Simple. I have tried it but confused about which choice.
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