The correct answer is: debit to Depreciation Expense.

Here's the step by step explanation:

1. Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents the decrease in value of the asset due to usage, wear and tear, obsolescence etc.

2. When recording annual depreciation, you need to increase (debit) your Depreciation Expense account. This is because expenses are increased by debits according to the rules of double-entry accounting.

3. At the same time, you need to increase (credit) your Accumulated Depreciation account. Accumulated Depreciation is a contra asset account (an asset account with a credit balance) that reduces the original cost of the asset to arrive at its book value.

4. The journal entry would look like this:

Debit: Depreciation Expense
Credit: Accumulated Depreciation

5. Therefore, the correct answer to the question "The journal entry to record annual depreciation for equipment includes a" is "debit to Depreciation Expense".

Question

The correct answer is: debit to Depreciation Expense.

Here's the step by step explanation:

1. Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents the decrease in value of the asset due to usage, wear and tear, obsolescence etc.

2. When recording annual depreciation, you need to increase (debit) your Depreciation Expense account. This is because expenses are increased by debits according to the rules of double-entry accounting.

3. At the same time, you need to increase (credit) your Accumulated Depreciation account. Accumulated Depreciation is a contra asset account (an asset account with a credit balance) that reduces the original cost of the asset to arrive at its book value.

4. The journal entry would look like this:

Debit: Depreciation Expense
   Credit: Accumulated Depreciation

5. Therefore, the correct answer to the question "The journal entry to record annual depreciation for equipment includes a" is "debit to Depreciation Expense".

Knowee AI · Accepted Answer

The correct answer is: debit to Depreciation Expense.

Here's the step by step explanation:

1. Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents the decrease in value of the asset due to usage, wear and tear, obsolescence etc.

2. When recording annual depreciation, you need to increase (debit) your Depreciation Expense account. This is because expenses are increased by debits according to the rules of double-entry accounting.

3. At the same time, you need to increase (credit) your Accumulated Depreciation account. Accumulated Depreciation is a contra asset account (an asset account with a credit balance) that reduces the original cost of the asset to arrive at its book value.

4. The journal entry would look like this:

Debit: Depreciation Expense
   Credit: Accumulated Depreciation

5. Therefore, the correct answer to the question "The journal entry to record annual depreciation for equipment includes a" is "debit to Depreciation Expense".

The journal entry to record annual depreciation for equipment includes a: Multiple Choicedebit to Accumulated Depreciationcredit to Equipmentdebit to Depreciation Expensecredit to Cash

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