What Happens to the Accounting Equation When the Adjustment for Depreciation

question 122

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.