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    kalexander2's Avatar
    kalexander2 Posts: 1, Reputation: 1
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    #1

    Dec 17, 2013, 05:51 AM
    Adjusting entry to record depreciation
    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    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.
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