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View Full Version : Adjusting entry to record depreciation


kalexander2
Dec 17, 2013, 05:51 AM
The adjusting entry to record depreciation should be reversed at the start of a new fiscal period to make subsequent financial record keeping easier.
True
False

rehmanvohra
Dec 17, 2013, 06:15 AM
FALSE. Reversal entries are meant for prepayments and accruals. Accumulated depreciation is a contra asset account, like allowance for doubtful debts which reflect the book value of these assets.