What Is the Effect of the Adjusting Entry for Depreciation

question 79

Multiple Choice

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

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

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Definitions:

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells, facilitating many biological processes.

Active Transport

The movement of molecules across a cell membrane from a region of lower concentration to higher concentration, requiring energy.

Facilitated Diffusion

A process of passive transport, as opposed to active transport, where molecules move across a membrane with the assistance of transport proteins, without energy expenditure.

Eggshell Membrane

The thin layer between the eggshell and the egg white, rich in protein and collagen, often used in dietary supplements and cosmetic products.