The Accumulated Depreciation account typically is debited when a(n)
A) betterment has been made.
B) ordinary repair has been made.
C) extraordinary repair has been made.
D) addition has been made.

Question

Quizplus · Accepted Answer

Accumulated Depreciation account is debited when an extraordinary repair has been made, as this type of repair increases the useful life or efficiency of the asset and thus reduces the amount of depreciation that can be charged in the future. Betterments and additions also increase the useful life or productivity of an asset and are capitalized as improvements, while ordinary repairs are expensed as incurred and do not affect the carrying amount or book value of the asset.

The Accumulated Depreciation Account Typically Is Debited When A(n)