Question

In a depreciation worksheet, Pranjali needs to correct errors before performing depreciation calculations. What does she need to correct based on the instruction?

A. Correct the tax details
B. Correct the asset descriptions
C. Correct the errors on the worksheet
D. Correct the historical cost of assets

Answer 1

Pranjali needs to review and correct all errors on the depreciation worksheet, which may include the historical cost of assets, asset descriptions, tax details, and any other mistakes to ensure accurate depreciation calculations.

Step-by-step explanation:

When Pranjali is instructed to correct errors before performing depreciation calculations on her worksheet, the focus should be on all aspects that contribute to accurate calculations. This generally includes correcting the historical cost of assets, ensuring that correct asset descriptions are provided, reviewing and correcting any tax details if necessary, and making sure that any other errors on the worksheet are addressed. All of these steps are crucial for ensuring that depreciation is calculated correctly because they directly impact the depreciation expense that will be reported on the business's financial statements.