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Which Statement Relating to Depreciation Is True

Question 35

Multiple Choice

Which statement relating to depreciation is true?


A) Accumulated depreciation represents the amount of an asset's cost that has been transferred to depreciation expense to date.
B) The cash account is affected by charging depreciation.
C) Accumulated depreciation is a contra-expense account.
D) Depreciation represents cash that can be used to replace assets when they wear out.

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