The adjusting entry to record depreciation should be reversed at the start of a new fiscal period to make subsequent financial record keeping easier.

Name: The adjusting entry to record depreciation should be reversed at the start of a new fiscal period to make subsequent financial record keeping easier.
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Question

Quizplus · Accepted Answer

Depreciation expense is not reversed at the start of a new fiscal period because it accumulates over the life of the asset, reflecting the asset's usage and wear over time.

The Adjusting Entry to Record Depreciation Should Be Reversed at the Start