A New Accountant Working for Unitas Company Records $800 Depreciation $\begin{array} { l } \text { Depreciation Expense }&800 \\ \text { Cash}& &800\\\end{array}$

question 187

Multiple Choice

A new accountant working for Unitas Company records $800 Depreciation Expense on store equipment as follows: $\begin{array} { l } \text { Depreciation Expense }&800 \\ \text { Cash}& &800\\\end{array}$
The effect of this entry is to

• A)adjust the accounts to their proper amounts on December 31.
• B)understate total assets on the statement of financial position as of December 31.
• C)overstate the book value of the depreciable assets at December 31.
• D)understate the book value of the depreciable assets as of December 31.

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Definitions:

Provisions

Liabilities of uncertain timing or amount, set aside in the accounting process to cover potential future losses or expenses.

Probate

The legal process through which a deceased person's will is validated and their estate is distributed.

Executor's Fees

Compensation paid to the executor of an estate for their services in managing and distributing the estate's assets.

Court Costs

Expenses associated with legal proceedings, including filing fees, charges for serving documents, and other legal expenses.