True or False: Depreciation of a vehicle can be entered as an adjustment.

Depreciation of a vehicle cannot be entered as an adjustment because it is typically recorded as an expense rather than an adjustment to the value of an asset on the balance sheet. Depreciation reflects the wear and tear of an asset over time and impacts the income statement as an operating expense. This is usually accounted for through systematic allocation of the vehicle's cost over its useful life using various methods such as straight-line or declining balance.

While depreciation affects the financial statements, it is not treated as a direct adjustment to the asset's original value in the same manner as corrections or revaluations. Instead, it is recorded periodically based on the accounting practices followed by the business. This ensures that financial statements accurately reflect the decreasing value of the vehicle over time due to its usage and aging.