The Adjusting Process - Adjusting Entries for Depreciation

4 important questions on The Adjusting Process - Adjusting Entries for Depreciation

What are Fixed Assets (or Plant Assets)

Long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in the normal business operations and that depreciate over time

What is Depreciation Expense?

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life

What is Accumulated Depreciation?

A contra asset account credited when recording the depreciation of a fixed asset
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What are Contra Accounts?

An account offset against another account

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