Which of the Following Describes the Effect of Recording Depreciation

question 44

Multiple Choice

Which of the following describes the effect of recording depreciation expense at year-end?

• A)Net income decreases and total assets decrease.
• B)Total assets decrease and stockholders' equity is not affected.
• C)Net income decreases and total assets increase.
• D)Stockholders' equity is not affected and net income decreases.

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Definitions:

Modernization Theory

A theory in sociology that argues that societies progress linearly from traditional to modern states, emphasizing the role of technology, economic development, and rational social institutions.

Economic Underdevelopment

A condition characterized by low industrialization, poor infrastructure, and a low standard of living within a country or region.

Western Attributes

Characteristics or qualities that are typically associated with Western societies, such as individualism, democracy, consumerism, and technological advancement.

Independence

The state of being free from external control or influence, self-governance, or autonomy.