6. Which of the following statements about property, plant, and equipment and depreciation is true?
a. Plant, property, and equipment assets are sold to customers in the normal course of business.
b. Accounting requires that the cost of a depreciable asset be recorded as an expense over times benefited by that asset.
c. Accumulated depreciation is the total amount of depreciation that has been recorded on a depreciable asset in the current period.
d. Accounting and general usages of the term depreciation are the same.
e. Land is a depreciable asset


I believe C is the right answer. Any comments?

I hate word problems.

But, if I have to choose, I would go with

Quote:

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b. Accounting requires that the cost of a depreciable asset be recorded as an expense over times benefited by that asset.

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I wouldn't say C

Quote:

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c. Accumulated depreciation is the total amount of depreciation that has been recorded on a depreciable asset in the current period.

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Why wouldn't I say C? Because accumulated depreciation is the grand total of all the years of depreciation.

Example, in 2002 we have 100 of depreciation expense, so accumulated deprecation is 100

In 2003 we have 100 of depreciation expense, so accumulated deprecation is now 200

Thanks once again. Your answer is right.

You're welcome nammu12