What Are the Effects on the Accounting Equation from the Adjustment

question 46

Multiple Choice

What are the effects on the accounting equation from the adjustment for depreciation?

• A)Total assets will increase and total stockholders' equity will increase.
• B)Total assets will increase and total stockholders' equity will decrease.
• C)Total assets will decrease and total stockholders' equity will decrease.
• D)Total assets will decrease and total stockholders' equity will increase.

---

Definitions:

Resale Value

The estimated value for which an asset can be sold in the marketplace at a future date, often considered for vehicles and property.

Equipment

Devices or tools necessary for completing specific tasks or operations, often used in various industries.

Inventory Record

Documentation that tracks the quantity, value, and location of all the inventory a company holds.

Units Sold

The total number of individual items or products sold by a company during a specific time period.