The correct entry to record the annual depreciation expense for a long-term asset is
A)Dr.Accumulated depreciation.
B)Dr.Depreciation expense,Cr.Accumulated depreciation.
C)Dr.Accumulated depreciation,Cr.Long-Term asset.
D)Dr.Depreciation expense,Cr.Long-Term asset.

Question

Quizplus · Accepted Answer

The correct entry to record the annual depreciation expense for a long-term asset is to debit Depreciation expense and credit Accumulated depreciation. This reduces the value of the asset on the balance sheet and recognizes the expense on the income statement. Option B correctly follows this rule. Option A only debits Accumulated depreciation, which would result in an incorrect balance. Option C credits Long-term asset, which would increase its value, and thus, result in an incorrect entry. Option D debits Long-term asset, which would also result in an incorrect entry.

The Correct Entry to Record the Annual Depreciation Expense for a Long-Term