Recording an Adjusting Journal Entry to Recognize Depreciation Would Cause

question 56

Multiple Choice

Recording an adjusting journal entry to recognize depreciation would cause which of the following?

• A)An increase in liabilities and expenses,and a decrease in stockholders' equity.
• B)A decrease in assets and stockholders' equity,and an increase in expenses.
• C)A decrease in assets,an increase in liabilities,and an increase in expenses.
• D)An increase in assets,an increase in liabilities,and a decrease in expenses.

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Definitions:

Solutions

Methods or plans devised to solve problems or address challenges effectively.

Evaluating Options

The process of examining and considering different choices or courses of action before making a decision.

Consensus

General agreement or the process of reaching such an agreement among members of a group.

Intangibles

Non-physical assets that cannot be seen, touched, or physically measured, such as brand reputation or intellectual property.