Question

When recording an adjustment for the use of equipment during the current accounting period, which two accounts are affected?

A.Accumulated Depreciation and Depreciation Expense
B.Equipment and Depreciation Expense
C.Accumulated Depreciation and Equipment
D.Revenue and Equipment

Answer 1

When recording an adjustment for the use of equipment during the current accounting period, the two accounts that are affected are Accumulated Depreciation and Depreciation Expense.

Step-by-step explanation:

When recording an adjustment for the use of equipment during the current accounting period, the two accounts that are affected are Accumulated Depreciation and Depreciation Expense.

Accumulated Depreciation is a contra asset account that tracks the total depreciation expense of an asset over time. When an adjustment is made for the use of equipment, the Accumulated Depreciation account is increased to reflect the additional depreciation.

Depreciation Expense, on the other hand, is an expense account that represents the portion of an asset's cost that is expensed in a particular accounting period. It is also increased when an adjustment is made for the use of equipment.