Company A owns a building. Which of the following statements regarding depreciation as used by accountants is
Question:
Company A owns a building. Which of the following statements regarding depreciation as used by accountants is false?
a. As the value of the building decreases over time, it "depreciates."
b. Depreciation is an estimated expense to be recorded over the building's estimated useful life.
c. As depreciation is recorded, stockholders' equity is reduced.
d. As depreciation is recorded, the net book value of the asset is reduced.
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Related Book For
Financial Accounting
ISBN: 9780073208145
5th Edition
Authors: Robert Libby, Patricia Libby, Daniel Short
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