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:

Disciplinary Notice

A formal written statement issued to an employee outlining a violation of policies or procedures and the consequences thereof.

Negative Message

Communication that conveys bad news, rejection, or a negative outcome to the receiver.

Customer

An individual or organization that purchases goods or services from a business.

Product Recalls

The process of retrieving defective or unsafe goods from consumers and providing those affected with a refund, replacement, or repair.