What is the effect of executing a periodic depreciation posting run?

Executing a periodic depreciation posting run is essential for accurately reflecting the depreciation of assets on financial statements. This process ultimately transfers the accumulated depreciation amounts to the asset master record, ensuring that the accounting system maintains up-to-date and accurate information about each asset's book value.

When the depreciation posting run is executed, it calculates the depreciation expense for the period and records it in the system. This action updates the asset's net book value by reducing it based on the amount of depreciation that has been applied. This entry is critical for ensuring that financial reports are accurate and compliant with accounting standards, as they need to reflect the true value of assets after accounting for wear, tear, and obsolescence.

While the other options touch on aspects related to asset accounting, they do not accurately describe the outcome of a periodic depreciation posting run. For instance, it does not remove all depreciation entries, nor does it merely add planned depreciation to financial reports or create backups of transactions. Instead, the focus is on the accurate transfer of accumulated depreciation to the asset master record, which is vital for proper asset management and financial reporting.