Recording periodic depreciation and amortization results in a
A)debit to an expense account, only
B)debit to a product cost account, only.
C)debit to either an expense account or a product cost account.
D)credit to either an expense account or a product cost account.
E)credit to an expense account, only.

Question

Quizplus · Accepted Answer

Periodic depreciation and amortization can result in a debit to either an expense account (such as depreciation expense) or a product cost account (such as cost of goods sold). The exact account used depends on the nature of the asset being depreciated or amortized and how it is used in the business. However, it would not result in a credit to an expense account or a debit to a product cost account, as suggested by options D and B, respectively. Option A is also incorrect as periodic depreciation and amortization can result in debits to both expense and product cost accounts. Option E is not correct as a credit would only occur if the asset was impaired or sold.

Recording Periodic Depreciation and Amortization Results in a