Question 7 (1 point) All of the following are true regarding depreciation except depreciation is a true measure of expired cost. depreciation is a estimate. Accumulated Depreciation is a contra asset account. depreciation is the process of allocating the cost of an asst to expense over its useful life. Double Nickels Company purchased a computer system for $4,500 on January 1 , 2013. The company expects to use the computer system for 3 years. It has no salvage value. Monthly depreciation expense on the asset is $0. $125. $1,500. $4,500. An adjusting entry could consist of all of the following except a debit to an expense and a credit to an assets. an expense and a credit to a revenue. an expense and a credit to a liability. a liability and a credit to revenue. Which of the following statements related to the adjusted trial balance is incorrect? It shows the balances of all accounts at the end of the accounting period. It is prepared before adjusting entries have been made. It proves the equality of the total debit balances and the total credit balances in the ledger. Financial statements can be prepared directly from the adjusted trial balance