What Is the Effect of the Adjusting Entry for Depreciation

question 13

Multiple Choice

What is the effect of the adjusting entry for Depreciation expense?

• A)The entry decreases total liabilities and increases total expenses.
• B)The entry decreases total assets and increases total expenses.
• C)The entry increases total assets and increases total expenses.
• D)The entry increases total liabilities and increases total expenses.

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Definitions:

Gross Negligence

A lack of care that demonstrates a reckless disregard for the safety or lives of others, significantly beyond ordinary negligence.

Bailment

The temporary placement of control or possession of personal property into someone else's hands, for a specific purpose, with the expectation of its return.

Legal Owner

The individual or entity that holds valid title to property or assets, recognized by law.

Accessories

Items that add to the convenience or performance of the primary product, or in legal terms, individuals who assist in the commission of a crime.