What Happens to the Accounting Equation When the Adjustment for Depreciation

question 114

Multiple Choice

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

• A)assets decrease and stockholders' equity decreases
• B)assets increase and stockholders' equity increases
• C)assets decrease and liabilities decrease
• D)liabilities increase and stockholders' equity decreases

---

Definitions:

Alcohol Rehabilitation

A process of medical or psychotherapeutic treatment for dependency on alcohol in order to restore a patient's ability to function without alcohol.

Involuntary Hospitalization

The act of admitting an individual to a psychiatric facility against their will for evaluation and treatment, typically because they are deemed a danger to themselves or others.

Major Depression

A psychological condition marked by an ongoing low mood or lack of enjoyment in pursuits, significantly disrupting everyday functioning.

State Institutions

Public facilities established by the government to provide a range of services, including education, mental health care, correctional facilities, and social services, to the members of a community.