What Is the Effect of the Adjusting Entry for Depreciation

question 129

Multiple Choice

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

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

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Definitions:

Smooth Muscle

A type of muscle found in the walls of hollow organs, such as blood vessels and the digestive tract, that contracts involuntarily.

Urethra

The duct through which urine is discharged from the bladder to the outside of the body in both males and females and through which semen is discharged in males.

Skeletal Muscle

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.

Marginal Product

The increase in output resulting from a one-unit increase in the quantity of a particular input, holding other inputs constant.