The entry to record depreciation is an example of an adjusting entry:
A)To apportion a recorded cost.
B)To apportion unearned revenue.
C)To convert a liability to revenue.
D)To record unrecorded revenue.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of a tangible asset over its useful life. The entry to record depreciation apportions a recorded cost (the cost of the asset) over the periods in which the asset is used, reflecting the decrease in value of the asset over time.

The Entry to Record Depreciation Is an Example of an Adjusting