Recording an Adjusting Journal Entry to Recognize Depreciation Would Cause

question 233

Multiple Choice

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

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

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Definitions:

Absolute Value

In mathematics, the distance of a number on the number line from zero, without considering direction; it's always a positive value.

Slope

The slope is the measure of the steepness or incline of a line, typically described as the ratio of the rise over the run between two points on the line.

Isocost Line

A line that represents all combinations of inputs which have the same total cost.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.