The Effect of Recording Depreciation for the Year Is A(n)

question 81

Multiple Choice

The effect of recording depreciation for the year is a(n) :

• A) decrease in assets and a decrease in net income.
• B) decrease in assets but no change in owners' equity.
• C) increase in assets and an increase in net income.
• D) decrease in net income and no change to assets.

---

Definitions:

End-Of-Quarter Payments

Payments that are made at the conclusion of a fiscal quarter, often related to financial obligations such as loans or leases.

Annuity

A fiscal product designed to disburse a static sequence of payments to someone, chiefly utilized as a means for generating income during retirement.

Periodic Interest Rate

The interest rate charged or earned over a specific period of time, often used in the context of loans or investments.

Annuity

An investment plan that entails fixed payments to beneficiaries, mainly to serve as an income source for those who have retired.