Question

When you create a fixed asset account and track depreciation, you give the as of date and the amounts for _______ and ________.

a) Cost; Date
b) Depreciation; Accumulated Depreciation
c) Expense; Income
d) None of the above

Answer 1

When creating a fixed asset account and tracking depreciation, you need to provide the cost and date of the asset.

Step-by-step explanation:

When you create a fixed asset account and track depreciation, you give the as-of date and the amounts for Cost and Date.

The Cost refers to the initial purchase amount of the fixed asset, while the Date indicates the date when the fixed asset was acquired.

By tracking depreciation, you can determine the decrease in value of the fixed asset over time and calculate the Depreciation expense and the Accumulated Depreciation on the asset's balance sheet.