What adjusting journal entry is needed to record depreciation expense for the period? Group of answer choices 1.a debit to Depreciation Expense; a credit to Cash 2.a debit to Accumulated Depreciation; a credit to Depreciation Expense 3.a debit to Depreciation Expense; a credit to Accumulated Depreciation 4.a debit to Accumulated Depreciation; a credit to Cash
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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