Holand,Inc.,determines that depreciation amounts to $900 for the period.The entry includes a
A)debit Depreciation Expense and credit Accumulated Depreciation for $900.
B)debit Accumulated Depreciation and credit Equipment for $900.
C)debit Depreciation Expense and credit Equipment for $900.
D)debit Equipment and credit Accumulated Depreciation for $900.
E)debit Accumulated Depreciation and credit Depreciation Expense for $900.

Question

Quizplus · Accepted Answer

The correct entry for recording depreciation involves debiting (increasing) Depreciation Expense and crediting (increasing) Accumulated Depreciation by the same amount, which reflects the expense recognition and the accumulation of depreciation over time, respectively.