The auditor is examining the accounting entries made to the accumulated depreciation account during the year and notices a significant amount of debits to the account.Which of the following provides the most logical explanation?
A)large number of asset retirements
B)salvage values were revised downward
C)useful lives were revised downward
D)allocation of fixed overhead were revised

Question

Quizplus · Accepted Answer

Debits to the accumulated depreciation account typically indicate a reduction in the account balance, which occurs when assets are retired or disposed of.

The Auditor Is Examining the Accounting Entries Made to the Accumulated