An auditor has identified numerous debits to accumulated depreciation of equipment.Which of the following is most likely?

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Debits to accumulated depreciation signify that the assets have been depreciated and had their costs matched with the revenue earned during their useful lives. A debit entry increases accumulated depreciation and decreases the asset's value. If many debits were made to accumulated depreciation of equipment, it's likely because plant assets were retired during the year. When an asset is retired, the remaining accumulated depreciation related to it will be posted as a debit to accumulated depreciation.

An Auditor Has Identified Numerous Debits to Accumulated Depreciation of Equipment.Which