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:

Pharmaceutical Industry

Refers to the sector of the economy that discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate them, or alleviate symptoms.

Drug Manufacturers

Companies engaged in the production, marketing, and distribution of medications for health conditions.

Demand Price

The maximum price at which consumers are willing to buy a specific quantity of a good or service.

Supply Price

The minimum price at which a producer is willing to sell a given quantity of a good or service.