Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account?
A) Extraordinary repairs have lengthened the life of an asset.
B) Prior years' depreciation charges were erroneously understated.
C) A reserve for possible loss on retirement has been recorded.
D) An asset has been recorded at its fair value.

Question

Quizplus · Accepted Answer

Significant debits to an accumulated depreciation account might occur due to extraordinary repairs that have lengthened the life of an asset. This would result in an increase in the total accumulated depreciation of the asset.

Which of the Following Explanations Might Satisfy an Auditor Who