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Commerce · Q175

Accounting

Graduate and Post Graduate · Commerce · question 175

Q175

An alternative term used for accumulated depreciation expenses?

A.
Provision for depreciation
Answer
B.
Cumulative depreciation
C.
Targeted depreciation
D.
Depletion

Answer: Option A

Solution

Answer: Option A
Solution:
Provision for depreciation is an alternative term used for accumulated depreciation expenses. Depreciation expense is recognized on the income statement as a non-cash expense that reduces the company's net income.